Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 1 - Financial Accounting and Accounting Standards - Questions: 7

Answer

Financial statements report only historical data that can be presented in monetary terms.

Work Step by Step

While general purpose financial statements are important, the data on such statements is limited to past, historical data, and is limited to data that can be stated in monetary terms. To fully understand the health and the potential of a business, it is necessary to analyze not only the historical data presented in general purpose financial statements, but other, more subjective, information such as customer satisfaction or forecasts.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.