Description Statement or Report Gives details about the firm's sales, costs, and profits for the past accounting period. Explains the changes in a company's stockholders' equity over the accounting year. Is published once a year and provides stockholders with details about the company's performance and financial condition. Provides a quantitative summary of a company's assets, liabilities, and net worth at a specific point in time. Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflows. Accountants focus on creating financial statements, whereas finance professionals mostly use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement would be the most helpful in answering the questions in the following table: How much cash is a firm generating through operating, investing, and financing activities? Balance Sheet Statement of Cash Flows O O How much debt and equity has the firm issued to finance its assets? If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to: O overstate its earnings. Ounderstate its earnings. Report past accounting period. r the accounting year. ils about the company's ilities, and net worth at a m its ongoing activities and Balance sheet finance professionals mostly use th Annual report tement would be the most helpful in Statement of cash flows E Income statement vesting, and financing activities? Statement of stockholders' equity its assets? term performance of the firm, in the short run the firm is likely to: d answer wing table: sh Flows