What Is Some Limitation Of Accounting Information?


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Accounting information tends to be static or representative of the past and not an indication of the future of a business or enterprise.   A financial forecast and marketing plan would be just as useful if not more so for a business that is establishing itself and has limited accounting information.   Accounting information to be comparatively valuable also should be benchmarked against local business or industry competitors.   Without a comparative what might appear successful or failure in a business, may in fact be the opposite.

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