1. Financial statements and reports What happened to assets, earnings, dividends, and cash flows during the financial year? Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information. A publicly held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of stockholders equity, and other financial information for analysis. The following table lists descriptions of the major financial statements and reports that a firm publishes. Identify the correct statement or report for each description. Description Statement or Report Provides details about the flow of funds from operating, investing, and financing activities. Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings Has three segments that when analyzed together Description Statement or Report Provides details about the flow of funds from operating, investing, and financing activities. Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. Has three segments that when analyzed together give an idea of what the company owns and what it owes. is published once a year and provides stockholders with details about the company's performance and financial condition. Accounts for all revenues and expenses over an accounting period. Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table: Statement of Stockholders Equity Income Statement O How profitable has the firm been? How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders? the annual report is very important for investors, because the information contained in the annual report helps Investors forecast expected earnings and dividends. Is published once a year and provides stockholders with details about the company's performance and financial condition. Accounts for all revenues and expenses over an accounting period. Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table: Income Statement O Statement of Stockholders' Equity How profitable has the firm been? O How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders? O O The annual report is very important for investors, because the information contained in the annual report: helps investors forecast expected earnings and dividends. Oshows the prices at which each investor purchased the company's stocks and bonds. 1. Financial statements and reports What happened to assets, earnings, dividends, and cash flows during the financial year? Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information. A publicly held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of stockholders equity, and other financial information for analysis. The following table lists descriptions of the major financial statements and reports that a firm publishes. Identify the correct statement or report for each description. Description Statement or Report Provides details about the flow of funds from operating, investing, and financing activities. Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings Has three segments that when analyzed together Description Statement or Report Provides details about the flow of funds from operating, investing, and financing activities. Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. Has three segments that when analyzed together give an idea of what the company owns and what it owes. is published once a year and provides stockholders with details about the company's performance and financial condition. Accounts for all revenues and expenses over an accounting period. Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table: Statement of Stockholders Equity Income Statement O How profitable has the firm been? How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders? the annual report is very important for investors, because the information contained in the annual report helps Investors forecast expected earnings and dividends. Is published once a year and provides stockholders with details about the company's performance and financial condition. Accounts for all revenues and expenses over an accounting period. Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table: Income Statement O Statement of Stockholders' Equity How profitable has the firm been? O How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders? O O The annual report is very important for investors, because the information contained in the annual report: helps investors forecast expected earnings and dividends. Oshows the prices at which each investor purchased the company's stocks and bonds
