Which of the following is False? The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the firm's future earnings and dividends, and the riskiness of those cash flows. Balance sheet provides a snapshot of a firm's financial position over a given period of time. Statement of cash flows reports the impact of a firm's activities on cash flows over a given period of time. Income statement summarizes a firm's revenues and expenses over a given period of time. The annual report contains four basic financial statements: the income statement, the balance sheet, the cash flow statement, and statement of stockholders' equity