ANNUAL REPORT ITEMS A company’s annual report includes the following items:

Financial statements Notes to the financial statements Management’s discussion and analysis Report of independent accountants Required:

For each of the following items, where would you most likely find the information in the annual report?

a. Detailed information on the outstanding debt of a company, including the interest rate being charged and the maturity date of the debt.

b. A description of the risks associated with operating the company in an international market.

c. The total resources and claims to the resources of a company.

d. A description of the accounting methods used by the company.

e. An opinion as to whether the financial statements are a fair presentation of the company’s financial position and results of operations.

f. A discussion of the sales trends of the company’s most profitable products.

g. The amount of dividends paid to common stockholders.

Exercise