What are the disadvantages of balance sheets?

Answer 1

A disadvantage of using financial statements is that the complete picture of a companyÕs finances may not be on the statement. For instance, the finances of a company can change drastically from month to month.

Answer 2

Does Not Consider Future Growth· One of the potential disadvantages of the statement of cash flows is that it does not take into consideration any future growth. When looking at the statement of cash flows, you are essentially looking at information from the past business operations. If the company is in the process of developing a ground-breaking piece of technology, it could be about to generate a large amount of cash. If you just look at the cash flow statement, you may not evaluate the future potential of the company correctly.

Interpreting Data

· Another potential problem with the statement of cash flows is that interpreting data may be difficult. The information on a cash flow statement is not necessarily easy to interpret. You can see where all of the cash flow is going, but you may not know if it should be going there. For example, it may be difficult to gauge whether the company should be investing more in a plant or paying off debt. You have to take all of the information presented and make the best assumptions you can make.

Answer 3

Disadvantages of food balance sheets are many. Sometimes people will take this too seriously, and they may decide not to eat certain things that they should be eating. It may ruin a person's diet.

Answer 4

disadvantages of balances sheets well if e=mcvagina than it equals that retard