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Corporate financial statements are produced annually by management and are expected to show the financial performance and its financial position. The main statements are the Income Statement, the Statement of Financial Position and the Cashflow Statement.


The above three statements provide complementary but contrasting information. However these financial statements do have their limitations. For example the Income statement can have not just one profit but there are several profits. Critically evaluate their individual uses and their limitations. How can these limitations be overcome?

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