Which of the following is a potential limitation of financial statement analysis?
A)Lack of comparability of firms in different industries
B)The impact of changing economic conditions
C)The impact of having more than one acceptable alternative accounting principle for accounting for a given transaction or economic event
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these options are potential limitations of financial statement analysis. Comparing firms from different industries can be challenging due to differences in business models, accounting practices, and economic factors. Economic conditions can impact financial statements, and accounting principles may vary among firms, affecting the analysis.

Which of the Following Is a Potential Limitation of Financial