The SEC Requires Disclose of Both Retrospective and Prospective Information

question 22

True/False

The SEC requires disclose of both retrospective and prospective information in the Management's Discussion and Analysis section of the annual report.

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Definitions:

Permanent Account Balances

Permanent account balances are those balances in accounts that are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Post-closing Trial Balance

A listing of all permanent accounts and their balances after closing entries have been made, serving as a check to ensure that debits equal credits.

Accounting Period

A specific time frame for which financial information is reported, usually a fiscal year or quarter.

Accounting Cycle

The complete set of accounting procedures from recording transactions to preparing financial statements within a specific period.