Description Statement or Report Is issued once a year by a corporation and conta
ID: 2807675 • Letter: D
Question
Description Statement or Report Is issued once a year by a corporation and contains basic financial statements and an analysis of past performance and future prospects Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflows Explains the changes in a company's retained earnings over the accounting year Has three segments that when analyzed together give an idea of what the company owns and what it owes Gives details about the firm's sales, costs, and profits for the past accounting period 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. O False TrueExplanation / Answer
Answer: Annual Reports are issued once in a year and it contains financial statements and analsis of past years performance.
Answer: Statement of Cash Flows: It aggregates all the cash inflows and cash outflows and company's ongoing activities.
Answer: Statement of Retained Earnings explains the changes in retained earnings over the accounting year.
Answer: Balance Sheet. Has three segments........And it gives the picture of Financial position of the company what it owes and what it owns.
The answer to first option is Statement of Cash flows........which reflects the cash flows through investing, financing and financing Activities.
The answer to second option is Balance Sheet.............Which gives clear picture of the debt and Equity of the firm.
Answer is TRUE.
Statement 1: The statement is False. Because the owned financial obligation has increased instead from year 1 to year 2.
Statement 2: The statement is False . Because of the third option. The current liability has hardly increased by $94 million, whereas the Long term liability has increased by larger amount of $ 281 million.
Statement 3: This statement is true, Because of the third option. There has been increase in accounts receivable, which means either the current receivables are not paying and or more credit sales than year 1, which has led to increase in accounts receivable.
The current cash and equivalents item in the current balance sheet is likely to decrease if the company plans to buy new plant and equipment with liquid capital.