Which of the Following Statements Is CORRECT

question 77

Multiple Choice

Which of the following statements is CORRECT?

• A) Assets other than cash are expected to produce cash over time,and the amounts of cash they eventually produce should be exactly the same as the amounts at which the assets are carried on the books.
• B) The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the firm's future earnings and dividends and the riskiness of those cash flows.
• C) The annual report is an internal document prepared by a firm's managers solely for the use of its creditors/lenders.
• D) The four most important financial statements provided in the annual report are the balance sheet,income statement,cash budget,and the statement of stockholders' equity.
• E) Prior to the Enron scandal in the early 2000s,companies would put verbal information in their annual reports along with the financial statements.That verbal information was often misleading,so today annual reports can contain only quantitative information-audited financial statements.

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Definitions:

Innate Tendency

Natural instincts or inclinations present at birth and not acquired through learning.

Competence, Autonomy

Attributes related to individuals' abilities to effectively perform tasks and make independent decisions, contributing to their sense of mastery and self-determination.

Relatedness

In psychology, relatedness refers to the need to feel connected to others, being an essential component of human motivation according to various theories, including self-determination theory.

Physiological Needs

Basic physical requirements necessary for survival, such as food, water, and sleep.