Question : Limitations of Cash-Flow Statement is
Option 1: It ignores the accrual concept of accounting
Option 2: No substitute for an Income Statement
Option 3: Historical in Nature
Option 4: All of the above
Answer (1)
16th Jan, 2024
Correct Answer: All of the above
Solution : Answer = All of the above
The limitations of the Cash Flow Statement include its disregard for the accrual concept, its inability to replace the Income Statement, and its historical nature. These factors collectively restrict its comprehensive depiction of a company's financial health.
Hence, the correct option is 4.
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