Limitations of financial reports (HSC Business Studies)

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The HSC Business Studies course has a major focus on financial reports/financial statements. Finance is a very large and complex topic in the HSC course.

One element of the course focuses specifically on the LIMITATIONS of using financial reports. That is -- what are the problems that can exist when you rely on the information in financial reports?

(Financial reports include balance sheets, cash flow statements and income statements.)

The video looks at the following limitations (as set out in the Business Studies syllabus):
*Normalised earnings (0:24)
*Capitalising expenses (3:30)
*Valuing assets (7:15)
*Timing issues (10:55)
*Debt repayments (16:39)
*Notes to the financial statements (18:40)

Get the notes slides I use so you can follow along with the video:

The information for this video comes from a range of sources. You can try the following for more details:

Do some practice questions!
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thanks man i really understood the entire limitations dot point

yashgupta
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Great Information, really helped me in my business exam!

chess_lord