- 5 Marks
FR – Nov 2014 – L2 – Q2a – Regulatory Framework for Financial Reporting
Explain limitations of accounting ratios in financial statement interpretation for a non-accounting executive.
Question
A non-accountant friend of yours attended a seminar for non-accounting executives on the interpretation of financial statements.
Though he enjoyed the seminar, especially the aspect on the uses of accounting ratios, he strongly believes that they have their limitations.
Required: State and explain the limitations of ratios for the purpose of interpreting financial statements. (5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Analysis Limitations, Financial Ratios, Interpretation, Non-Accountant
- Level: Level 2
- Topic: Regulatory Framework for Financial Reporting
- Series: NOV 2014
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