Question

Please correctly answer all parts of question #1

1. Financial statements and reports A Aa What happened to assets, earnings, dividends, and cash flows during the financial year? Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information. A publicy held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of retained earnings, and other financial information for analysis. 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.

Answer 1

1:Annual report

(It publishes the balance sheet and income statement)

2: Cash flow statement

(Funds from operating, investing and financing sections)

3: Balance Sheet

(It shows the assets and liabilities and equity and this shows what the company owns and what its owes)

4: Statement of retained earnings

(Details the opening stock, retained earnings, dividends paid and closing equity)

5: Income statement

(Depicts the revenues and expenses of the business as well as profit/loss)

6: How profitable the firm is (Income statement)

(Depicts the revenues and expenses of the business as well as profit/loss)

7: How much of the earnings are left as balance after dividend is paid (Statement of retained earnings)

(Details the opening stock, retained earnings, dividends paid and closing equity)