Meaning of Financial Statements Financial statements means the statements prepared for the purpose of presenting a periodical review or report on the progress of business by the management.
What is a financial statement? The term financial statement refers to statement of Changes in financial position, Statement of Retained Earnings, Balance Sheet, Profit and Loss Account, etc.
The financial statement analysis has some limitations. Hence, the interested party should keep all these limitations into his/her mind while making analysis. Limitations of financial statement analysis 1.