Question

The stockholder's annual report must includeSelect one:a. a statement of cash flows.b. an income statement.c. a balance sheet.d. a statement of retained earnings.e. all of the above

Answer 1

Answer:

The correct answer is d. all of the above

Explanation:

The annual reports comprise of following things which are shown below:

Statement of cash flow: It comprises of three activities that include operating activities, investing activities, and the financing activities.

Income statement: It records all revenues and all expenditure for a year. If an answer comes in a positive amount the company earns profit else loss.

Balance sheet: It includes assets, liabilities and shareholder equity which analyze the financial position, performance and liquidity of the company

Statement of retained earnings: The retained earnings is the profit which is invested to earn a maximum return. It adds the net income and deducts the dividend paid amount.

All of the statements are required for a stockholder's annual report.

Therefore, the correct answer is d. all of the above.