Which of the following statements is true about the annual report of a company?
A)The annual report contains four basic financial statements: the income statement; balance sheet; statement of cash flows; and statement of changes in long-term financing.
B)The annual report does not provide any information about a firm's future prospects.
C)The key importance of annual report information is that it is used by investors when they form their expectations about the firm's future earnings and dividends.
D)The annual report provides no relevant information for use by financial analysts or by the investing public.
E)The annual report is a report issued by each of the shareholders to the corporation and it contains information about the performance of the shares of the firm held by the shareholders.

Question

Quizplus · Accepted Answer

The annual report is crucial for investors as it provides detailed information about the company's financial performance and future prospects, which helps in forming expectations about future earnings and dividends.

Which of the Following Statements Is True About the Annual