Which of the following information in an annual report describes the firm's performance during the past year and also provides information regarding new developments that will affect future performance of the firm?
A) Basic financial statements
B) Discussion of operations
C) Proxy statements
D) DuPont chart
E) Memorandum of understanding

Question

Quizplus · Accepted Answer

The discussion of operations section typically provides a review of the company's performance during the past year, along with new developments and initiatives that will impact future performance. The basic financial statements (choice A) provide information on the company's financial position, but do not necessarily provide insight into future performance. Proxy statements (choice C) relate to the election of the board of directors, executive compensation, and other governance matters. The DuPont chart (choice D) is a tool used to analyze a company's return on equity, but does not necessarily provide information about new developments. A memorandum of understanding (choice E) is a non-binding agreement between parties outlining the intent to enter into a formal agreement, and is not typically included in an annual report.

Which of the Following Information in an Annual Report Describes