Statement or Report Annual report Description 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. is published once a year and provides stockholders with details about the company's performance and financial condition Provides details about the flow of funds from operating, Investing, and financing activities Explains the changes in a company's stockholders' equity over the accounting year Income statement Statement of stockholders' equity Balance sheet Statement of cash flows Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table: Income Statement Statement of Stockholders' Equity How profitable has the firm been? O How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders? 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. True False