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. Statement or Report Description Is required by the SEC and includes the audited document that Balance sheet shows the company's financial results for the past year and Income statement management's discussion about the future outlook and plans Summarizes a company's assets, liabilities, and stockholders' Statement of cash flows Annual report equity at a specific point in time Statement of retained earnings Gives details about the company's cash at the beginning of the year and what is left at the end of the year, including some details about where cash was generated and where it was used during the course of the year Gives details about the firm's sales, costs, and profits for the past accounting period Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings 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: 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. True O False