1. Financial statements and reports. What happened to assets, esrnings, dividends, and cash flows during the financial year? Accounting practice in the United States follons the penerally accepted accounting princlples (GAAp) developed by the Finanolal Acceunting Standards Bosrd (FASB), which is a nongovernmental, professicnal standards body that montors accounting practices and evaluates controveraial issues. The Securties and Exchapge Commissien (SEC) requires all publicly traded companies to periedically report their financial informatien. A publicy heid corporation must publish an annual report that contains the balance sheet, income statement, statement of cash fows, statement of retained eamings, and ocher financial information for analysis. The folowing table lists descriptiens of the inajor finandal statements and reports that a firm publishes. Idenofr the correct statement or report for eich description. Identify the correct statement or report for each description. Description Statement or Report Is issued once a year by a corporation and contains basic financial staceneets and an arubsis of past performance and future prospects Is divided into two important parts: operating and nonoperating sections: abo known as the proft and loss stalement Has three segments that when anstyzed together give an idea of what the company owns and what it cowes Agaregales all cash inflows, which the company receves from its ongoing activities and investment sources, and all cesh outfows Explains the charges in a companys retained earnings over the accounting year Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and anuwer questions about its performance. Indicate which financial statement vou would refer to when answering the questions in the following table