Author Question: Today corporations are required to send their stockholders an annual report. Assume that you are a ... (Read 45 times)

AEWBW · **on:** Jul 14, 2018

Today corporations are required to send their stockholders an annual report. Assume that you are a prospective investor trying to decide if you should invest in a specific corporation. What type of information is contained in an annual report that would help you decide if this is the right investment for you?

Question 2

The Employee Retirement Income Security Act passed in 1974 requires firms to provide a retirement plan for their employees.

Indicate whether the statement is true or false

tashiedavis420 · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

Information on the income statement including revenue, cost of goods sold, expenses, and net income can be used to help make a decision to sell or hold an investment. Information on a firm's balance sheet including changes in assets, liabilities, owners' equity, and retained earnings can also be used to make a decision to buy or hold an investment. Finally, the information on a firm's statement of cash flows may also be used to make a buy or hold decision.

Answer to Question 2

False