Question:
Write any four limitations of Cash Flow Statement.
Write any four limitations of Cash Flow Statement.
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Cash Flow Statement shows liquidity position, not profitability.
Updated On: Feb 16, 2026
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Solution and Explanation
It does not show the net profit or loss of the business.
It ignores non-cash transactions such as depreciation and provision.
It does not reflect the true profitability of the business.
It does not provide complete information about the financial position of the firm.
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