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For each of the following, indicate where you would locate the information in an annual report. (Hint: The information may be in more than one location.) (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) 1. Description of a company's primary business(es). V Management's Discussion and Analysis ? Statement of cash flows O Summary of significant accounting policies note V Letter to shareholders 2. Income taxes paid. V Income statement

For each of the following, indicate where you would locate the information in an annual report. (Hint: The information may be in more than one location.) (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) 1. Description of a company's primary business(es). V Management's Discussion and Analysis ? Statement of cash flows O Summary of significant accounting policies note V Letter to shareholders 2. Income taxes paid. V Income statement

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Locating Information in an Annual Report For each of the following, indicate where you would locate the information in an annual report. (Hint: The information may be in more than one location.) **You may select more than one answer. Single-click the box with the question mark to produce a check mark for a correct answer and double-click the box with the question mark to empty the box for a wrong answer.** --- #### 1. Description of a company's primary business(es). - [X] **Management's Discussion and Analysis** - [ ] Statement of cash flows - [ ] Summary of significant accounting policies note - [X] **Letter to shareholders** #### 2. Income taxes paid. - [X] **Income statement** - [ ] Balance sheet - [ ] Notes - [ ] Statement of cash flows #### 3. Accounts receivable. - [ ] Summary of significant accounting policies note - [X] **Balance sheet** - [ ] Management's Discussion and Analysis - [ ] Income statement
Transcribed Image Text:### Locating Information in an Annual Report For each of the following, indicate where you would locate the information in an annual report. (Hint: The information may be in more than one location.) **You may select more than one answer. Single-click the box with the question mark to produce a check mark for a correct answer and double-click the box with the question mark to empty the box for a wrong answer.** --- #### 1. Description of a company's primary business(es). - [X] **Management's Discussion and Analysis** - [ ] Statement of cash flows - [ ] Summary of significant accounting policies note - [X] **Letter to shareholders** #### 2. Income taxes paid. - [X] **Income statement** - [ ] Balance sheet - [ ] Notes - [ ] Statement of cash flows #### 3. Accounts receivable. - [ ] Summary of significant accounting policies note - [X] **Balance sheet** - [ ] Management's Discussion and Analysis - [ ] Income statement
### Understanding Financial Statements and Notes In financial reporting, various documents are vital for understanding a company's financial health, operations, and policies. Below are key elements and their corresponding sources: 1. **Cash flow from operating activities:** - **Statement of Cash Flows** (✔️) - **Summary of Significant Accounting Policies Note** - **Letter to Shareholders** - **Notes** 2. **Description of a company's revenue recognition policy:** - **Management's Discussion and Analysis** (✔️) - **Letter to Shareholders** (✔️) - **Summary of Significant Accounting Policies Note** - **Income Statement** 3. **The inventory sold during the year:** - **Summary of Significant Accounting Policies Note** - **Income Statement (Cost of Goods Sold)** (✔️) - **Letter to Shareholders** - **Management's Discussion and Analysis** 4. **The data needed to compute the net profit margin ratio:** - **Summary of Significant Accounting Policies Note** - **Notes** - **Letter to Shareholders** - **Income Statement** (✔️) ### Detailed Explanations #### 1. Statement of Cash Flows: This document details the cash generated and used during operating, investing, and financing activities over a specific period. #### 2. Management's Discussion and Analysis (MD&A): MD&A offers insights into the financial statements from the company's management, providing context on the revenue recognition policies and operational results. #### 3. Income Statement: An income statement summarizes the company's revenues and expenses over a particular period, highlighting its efficacy in generating profit. These documents, along with additional notes and letters, offer a holistic view of the company's financial standing, guiding stakeholders in making informed decisions.
Transcribed Image Text:### Understanding Financial Statements and Notes In financial reporting, various documents are vital for understanding a company's financial health, operations, and policies. Below are key elements and their corresponding sources: 1. **Cash flow from operating activities:** - **Statement of Cash Flows** (✔️) - **Summary of Significant Accounting Policies Note** - **Letter to Shareholders** - **Notes** 2. **Description of a company's revenue recognition policy:** - **Management's Discussion and Analysis** (✔️) - **Letter to Shareholders** (✔️) - **Summary of Significant Accounting Policies Note** - **Income Statement** 3. **The inventory sold during the year:** - **Summary of Significant Accounting Policies Note** - **Income Statement (Cost of Goods Sold)** (✔️) - **Letter to Shareholders** - **Management's Discussion and Analysis** 4. **The data needed to compute the net profit margin ratio:** - **Summary of Significant Accounting Policies Note** - **Notes** - **Letter to Shareholders** - **Income Statement** (✔️) ### Detailed Explanations #### 1. Statement of Cash Flows: This document details the cash generated and used during operating, investing, and financing activities over a specific period. #### 2. Management's Discussion and Analysis (MD&A): MD&A offers insights into the financial statements from the company's management, providing context on the revenue recognition policies and operational results. #### 3. Income Statement: An income statement summarizes the company's revenues and expenses over a particular period, highlighting its efficacy in generating profit. These documents, along with additional notes and letters, offer a holistic view of the company's financial standing, guiding stakeholders in making informed decisions.
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