Explain Why Companies Prepare Financial Statements on an Annual Basis

question 72

Essay

Explain why companies prepare financial statements on an annual basis.

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Definitions:

Experiments

The implementation of scientific procedures undertaken to discover something unknown or test a hypothesis, involving a manipulation of variables to determine cause and effect.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing how one may predict the other.

Naturalistic Observation

The study method where subjects are observed in their natural environment without any manipulation by the observer.

Dependent Variable

In experimental and statistical research, the variable being tested and measured, which is expected to change as a result of manipulations to the independent variable.