Which of the Following Statements Is True About the Annual

question 65

Multiple Choice

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.

---

Definitions:

Monopoly Power

The ability of a single entity or company to control a significant portion of the market for a particular good or service, allowing it to set prices and limit competition.

Total Assets

The entirety of what a company or individual owns, including money, securities, equipment, and real estate.

Sherman Act

A landmark federal statute in the antitrust law that prohibits monopolistic practices and promotes competition.

Robinson-Patman Act

A United States federal law aimed at preventing anticompetitive practices by producers, specifically price discrimination.