Financial Management in Consumer Cooperatives

What is the primary source of capitalization in a cooperative?

• Government subsidy

• Donations from NGOs

• Member shares

• Patronage refunds

Which financial statement shows the cooperative’s assets, liabilities, and equity at a specific time?

• Income Statement

• Cash Flow Statement

• Balance Sheet

• Budget Plan

In cooperatives, profits are returned to members based on their participation. This is called:

• Dividend

• Patronage Refund

• Interest Payment

• Capital Share

Why is auditing important in cooperatives?

• To increase sales

• To verify the accuracy of financial records

• To reduce membership fees

• To avoid paying taxes

Which statement is TRUE about the Cash Flow Statement?

• It shows the cooperative’s profits and losses.

• It tracks the movement of money in and out of the cooperative.

• It lists only the cooperative’s debts.

• It records members’ attendance in meetings.