Description Statement or Report Is issued once a year by a corporation and contains basic financial statements and an analysis of past performance and future prospects Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflows Explains the changes in a company's retained earnings over the accounting year Has three segments that when analyzed together give an idea of what the company owns and what it owes Gives details about the firm's sales, costs, and profits for the past accounting period Accountants focus on creating financial statements, whereas finance professionals mostly use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement would be the most helpful in answering the questions in the following table. Balance Sheet Statement of Cash Flows How much cash is a firm generating through operating, investing, and financing activities? How much debt and equity has the firm issued to finance its assets? True or False: As long as the information reported follows the generally accepted accounting principles (GAAP) guidelines, accountants in a firm have the liberty to use personal judgment to report transactions in the firm's financial statements. O False True