Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Who protects the interest of investors?

Options:

Shareholders

Stock Exchange

Trade Association

All of these

Correct Answer:

Stock Exchange

Explanation:

The correct answer is option 2- Stock Exchange.

Financial statements help the stock exchanges to understand the extent of transparency in reporting on financial performance and enables them to call for required information to protect the interest of investors. The financial statements enable the Stock brokers to judge the financial position of different concerns and take decisions about the prices to be quoted.