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.

Question

Quizplus · Accepted Answer

The annual report provides important financial and non-financial information about the company, which is used by investors to make informed decisions about the company's future earnings and potential for risk. This information includes financial statements, management discussion and analysis, auditor opinions, and other important data points. Therefore, the annual report is a crucial document for investors and plays an important role in finance.

Primary Reason the Annual Report Is Important in Finance Is