Financial statements that must be included in the annual report include the:
A) statement of sales
B) right sized income statement
C) statement of cash flows
D) statement of changes in shareholder market value

Question

Quizplus · Accepted Answer

The statement of cash flows is a required financial statement that must be included in the annual report according to Generally Accepted Accounting Principles (GAAP). This statement shows the inflows and outflows of cash for the company over a specified period and is important for investors and analysts to understand the company's liquidity and ability to generate cash. The other options (A, B, D) are not required financial statements that must be included in the annual report.

Financial Statements That Must Be Included in the Annual Report