
Which of the following is a limitation of financial analysis?

Important Questions on Limitations of Financial Statements
The statement given below is followed by two assumptions I and II. Consider the statement and assumptions and decide which of the following assumptions is/are implicit in the statement?
Statement :
The supply of energy to households is necessary for sustainable development.
Assumptions
I. Compact Fluorescent Lamp(CFL) should be used in the houses in the place of more bright light bulbs.
II. One should grow shady trees and plants around the house. Energy can be conserved by such land use (specifically deciduous trees), particularly if trees are planted to the west of the house.

The question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.
Statement: A company chairman informs in the board meeting, “Since our business is expanding, there is a need to employ more employees”.
Assumptions
I. Present employees are not capable.
II. Competent and appropriate people will be available for employment.
III. More staff will help expand the business.

In each question below is given a statement followed by two assumptions numbered I and II. Consider the statement and decide which of the given assumptions is implicit.
Statement: The student said to the student “I need your notes for reading".
Assumptions:
The student has made notes.
The student wishes to prove his understanding.

"Although the State government has been funding College XYZ for the past 10 yr, it has decided not to do so this year."—Local news report
Which ofthefollowing may not be a reasonfor the decision of the government to discontinue the funding of the said college this year?

Given is a statement followed by two assumptions numbered I and II. Consider the statement and the following assumptions and decide which of the assumptions is/are implicit in the statement.
Statement :
There are many great people who have sacrificed their lives for bringing freedom to our country.
Assumptions:
I. One has to die to bring freedom.
II. We live and die once.

This question consists of an information and two statements numbered I and II given below it. You have to decide which of the given statements weaken/s or strengthen/s the information and decide the appropriate answer:
Statement: According to a report, the naval ship 'AquaMap' met with a fatal accident owing to the fact that it was ageing and nearly two decades old.
I. The accident took place when the seaman at the artillery section accidentally misfired the missile, hitting certain crucial engine machinery.
II. The average age of all ships, battleships, or cargo ships is 30-35 years, before which they can be operated safely.

The question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.
Statement: A notice in the clinic reads: "The sales personnel coming with an objective to sell are not permitted to meet the doctor.”
Assumption:
I. All sales officers coming to meet the doctor with the objective to sell will not come to the clinic.
II. Receptionist can stop sales officers from meeting the doctor.


There are two arguments in context of the statement below. Consider the statement and argument to decide which argument is strong in context of the statement.
Statement:
Does eating an apple everyday keeps one free of diseases
Arguments:
I. Yes, eating an apple a day provides the needed nourishment.
II. No, every variety of fruits is needed for the healthy physical development.

There are two arguments after the statement below. You have to decide which argument is strong in context of the statement.
Statement : Should music therapy be started in hospitals?
Arguments
I. Yes, it has been proved that music has healthy influence on body and mind. It will help the patients recover quickly.
II. No, this will not help.

This question consists of a statement and two assumptions numbered I and II given below it. An assumption is something which is not directly given but can be assumed from the given information. You have to find out which of the given assumptions, numbered I and II are implicit in the given statement?
Statement: Exercising does not necessarily mean gymnasium with high technology machines. After all people living in villages are well maintained and are hardly overweight.
I. Gymnasiums are not very readily available or used in villages.
II. People living in villages do not believe in the use of high technology gymnasiums.

Statement
Doctors these days advise the consumption of rice in the dinner.
Presuppositions
I. Late night dinner produces toxin in the because the food remains undigested for a long time.
II. Rice digests quickly .

Which alternative applies to the following statement and assumption?
Statement :
Go by aeroplane to reach Delhi from Chennai quickly.
Assumptions :
I. Chennai and Delhi are connected by air service.
II. There is no other means to commute from Chennai to Delhi.
III. The air distance between Delhi and Chennai is less.

Consider the given statement and decide which of the following assumptions is/are implicit in the statement.
Statement :
“Every city must house an ecological park”, says the Mayor to his secretary.
Assumptions :
I. Ecological parks improve green cover.
II. Ecological parks help reduce air pollution.




Statement: “These days people know that walking on grass provides energy to the body”.
Assumption :
I. Stress and worries are the major dangers of the modern age.
II. Walking on the grass is actually a very easy physical exercise.

The UN World Food Program warned of severe shortages of food and fuel in Nepal caused by the ongoing major disruptions in imports across its southern border with India, saying that the landlocked country could face extreme hardship if prices of basic food staples continue to soar.
Which of the following has been assumed in the given statement?

Statement
Vimla said reminding her husband, "I hope you have taken your raincoat".
Presupposition
I. There is likelihood of rain.
II. Vimla is careful about the health of her husband.

