Final answer:
Providing trends of accounting information is not a limitation of financial statement analysis; it is, in fact, a significant aspect that aids in understanding historical performance and potential future patterns.
Step-by-step explanation:
The question pertains to the limitations of financial statement analysis. Financial statement analysis has several limitations, but performing trends of accounting information is not one of them. Therefore, the item which is not a limitation of financial statement analysis is D. providing trends of accounting information.
Comparing financial data across companies (A) can be complicated due to different accounting policies, industries, and sizes. Viewing ratios as the only information needed to make decisions (B) overlooks qualitative aspects and the broader business context. However, providing trends helps in understanding the historical performance and can indicate future patterns which are valuable for decision-makers.
Financial statement analysis involves examining a company's financial statements, such as the balance sheet, income statement, and cash flow statement, to assess its performance and make informed decisions. While ratios are an important tool in financial statement analysis, they are not the only information that should be considered. Other factors, such as industry trends, market conditions, and qualitative information, should also be taken into account.