Discuss each of the following topics below. Each topic should be a min of 150-200 words, plus at least one reference per topic. Discuss each topic separately, so use a heading for each one. Thanks.

Major Limitation of Financial Statements

Cash Flow – Positive

Benchmarking – Provide Examples

Answer preview

       Significant limitations of financial statements are due to personal judgment, recorded facts, accounting rules, and conventions. Factors like accounting rules strictly claim the essential components of financial statements. Without the proper follow-up on the accounting rules, the development of financial statements may seem difficult. False and misleading data may be encountered as well. If proper documentation and information recording is done while preparing financial statements, the financial position of the company is reflected correctly. It is important to note that, qualitative information…