Financial accounting data has some inherent limitations. Which of the following are limitations?

Financial accounting data has some inherent limitations. Which of the following are limitations? 

I. Not all economic events are easily quantifiable.
II. Many accounting entries rely heavily on estimates.
III. Historical cost can distort statements.
IV. Inflation can distort accounting data.


A. I, II and III
B. I, III and IV
C. II, III and IV
D. I, II, III and IV




Answer: D


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