Question

As financial statements do not show aggregate information, it may not help the ________ in decision-making much.

• A. owners
• B. users
• C. customers
• D. both a and b

Answer 1

The correct option is B users

A financial statement is a collection of data organised according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm.

Financial statements show aggregate information but not detailed information. Hence, they may not help the users in decision-making much.