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. about its performance. Indicate which financial statement you would refer to when answering the questions in the following table: If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to: understate its earnings. overstate its earnings. 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. about its performance. Indicate which financial statement you would refer to when answering the questions in the following table: If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to: understate its earnings. overstate its earnings