All of the Following Are True of Annual Reports EXCEPT

question 47

Multiple Choice

All of the following are true of annual reports EXCEPT

• A)80% of portfolio managers use annual reports when making decisions.
• B)annual reports contain income statements and balance sheets.
• C)annual reports contain cash flow statements.
• D)the 10-k form contains information also available in the annual report.
• E)annual reports contain notes to the financial statements indicating why certain actions were taken.

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Definitions:

Purchases

The acquisition of goods or services by a company in exchange for money.

Perpetual Inventory System

An inventory system in which a detailed inventory record is maintained, recording each purchase and sale during the accounting period.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at specific periods, such as monthly or annually, through a physical count.

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.