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Question: What is an annual report? Briefly describe the key parts of the annual report.

Short Answer

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Answer

An annual report is all about the financial performance and other activities of an organization in the last preceding years

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01

Annual Report (Definition)

An annual report is all about the financial performance and other activities of an organization in the last preceding years. It will give a clear idea to the investors and shareholders regarding the company's efficiency, Financial ratios, and Cash Flow from operations. It also provides information about audited accounts and income statements to institutional investors.

02

Parts of Annual Report

Introduction about the company -

This section deals with the different business and operational activities of the Corporation. It includes the chairman's letter, board of directors, and shareholders’ information separately.

Statement of funds Flow & cash flows-

It will provide information about cash Inflows, Outflows, and funds from the operation. so that an investor can be able to know about day-to-day businesses activities and dividend distribution for a period of time...

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Most popular questions from this chapter

Classifying costs Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given below, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further determine if the cost is a selling expense or administrative expense (Admin). Cost (a) is answered as a guide

Cost Product Period

DM DL MOH Prime Conversion Selling Admin.

a. Metal used for rims

b. Sales salaries

c. Rent on factory

d. Wages of assembly workers

e. Salary of production supervisor

f. Depreciation on office equipment

g. Salary of CEO

h. Delivery expense

Making ethical decisions

Sue Peters is the controller at Vroom, a car dealership. Dale Miller recently has been hired as the bookkeeper. Dale wanted to attend a class in Excel spreadsheets, so Sue temporarily took over Dale’s duties, including overseeing a fund used for gas purchases before test drives. Sue found a shortage in the fund and confronted Dale when he returned to work. Dale admitted that he occasionally uses the fund to pay for his own gas. Sue estimated the shortage at $450.

Requirements 2. Would you change your answer if Sue Peters was the one recently hired as controller and Dale Miller was a well-liked, long time employee who indicated he always eventually repaid the fund?

Calculating cost of goods sold for merchandising and manufacturing companies

Below are data for two companies:

Company 1 Company 2

Beginning balances:

Merchandise Inventory \( 11,600

Finished Goods Inventory \) 15,400

Ending balances:

Merchandise Inventory 12,400

Finished Goods Inventory 11,300

Net Purchases 152,500

Cost of Goods Manufactured 214,500

Requirements

1. Define the three business types: service, merchandising, and manufacturing.

2. Based on the data given for the two companies, determine the business type of each one.

3. Calculate the cost of goods sold for each company

Identifying product costs and period costs Classify each cost of a paper manufacturer as either a product cost or a period cost:

d. Salaries of the company’s top executives.

Identify each cost as a period cost or a product cost. If it is a product cost, further indicate if the cost is direct materials, direct labor, or manufacturing overhead. Then determine if the product cost is a prime cost and/or a conversion cost.

10.Salary of the factory maintenance supervisor

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