Limitation of Fund flow Statement
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| Limitation of Fund Flow Statement |
1. Fund flow Statement does not
contain the past information which may be a vital information to take quality
decision at times.
2. The current year Fund flow
Statement is used for current year only and not useful for future operation and
decision making purpose also.
3. It fails to reveal continuous
changes.
4. The accuracy and reliability of
Funds flow Statement is fully depending upon the financial statements.
5. It is not a substitute of profit and
loss account and balance sheet. It provides only additional information.
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