Question

Trade associations may analyse the financial statements for the purpose of providing service and protection to the _________.

• A. owners
• B. shareholders
• C. managers
• D. members

Answer 1

The correct option is D members

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.

One of the importance of financial statement is it aids trade associations in helping their members as Trade associations may analyse the financial statements for the purpose of providing service and protection to their members. They may develop standard ratios and design uniform system of accounts.