A company's ______ include the financial statements and notes to the financial statements as well as management's extensive discussion and analysis.
A. Balance Sheet
B. Internal Audit Report
C. Annual Report
D. Income Statement
My answer is B, is this right?
Your answer is not correct. The correct answer is C. Annual Report.
To determine the correct answer, it is helpful to understand what each option represents. Let's go through each option:
A. Balance Sheet: The balance sheet is a financial statement that provides a snapshot of a company's financial position, showing its assets, liabilities, and shareholders' equity at a given point in time.
B. Internal Audit Report: An internal audit report is a document prepared by the company's internal audit department outlining the findings and recommendations of their audit activities. It focuses on evaluating and improving the effectiveness of a company's internal controls and risk management processes.
C. Annual Report: The annual report is a comprehensive document that companies prepare to provide information to their shareholders and the general public about their financial performance, operations, and other relevant information. It typically includes the financial statements (such as the balance sheet, income statement, and cash flow statement), as well as the notes to the financial statements. Additionally, the annual report often contains a section called Management's Discussion and Analysis (MD&A), which provides management's perspective on the company's performance, financial condition, and future prospects.
D. Income Statement: The income statement, also known as the profit and loss statement, shows a company's revenues, expenses, and net income or loss over a specific period. It summarizes the company's financial performance during that period.
Therefore, the correct answer is C. Annual Report, as it includes the financial statements and notes to the financial statements, along with management's extensive discussion and analysis.