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Provides a quantitative summary of a company's assets Balance sheet liabilities, and net worth at a specific point in time Is divided into two important parts: operating and Income statement nonoperating sections, also known as the profit and loss statement Reconciles (1) the amount of retained earnings recorded at the Statement of retained earnin beginning of the reporting period, (2) changes during that period, and (3) the amount of retained earnings at the end of the reporting period Accountants focus on creating financial statements, whereas finance professionals mostly use these statements to ua m and answer questions about its performance. Indicate which financial statement would be the most ering the questions in the following table. Balance Sheet Statement of Cash Flows 'How much cash is a firm generating through operating, investing, and financing activities? How much debt and equity has the firm issued to finance its assets? True or False: As long as the information reported follows the generally accepted accounting principles (GAAP) guidelines, accountants in a firm have the liberty to use personal judgment to report transactions in the firm's financial statements. False O True