< Back to Assignment Attempts: 2.1 4.6 Keep the Highest: 4.6/7 1. Financial statements and reports What happened to assets, earnings, dividends, and cash flows during the financial year? Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information. A publicly held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of retained earnings, and other financial information for analysis. The following table lists descriptions of the major financial statements and reports that a firm publishes Identify the correct statement or report for each description. Description Is required by the SEC and includes the audited document that shows the company's financial results for the past year and management's discussion about the future outlook and plans Gives details about the firm's sales, costs, and profits for the past accounting period Provides a quantitative summary of a company's assets, liabilities, and net worth at a specific point in time Statement or Report