The annual report only contains three basic financial statements: the income statement, balance sheet, statement of cash flows.

True / Fasle

The statement is: False.

Explanation:

The Annual Report is a yearly publication that public corporations must provide to shareholders to describe their operations and financial condition. The Securities and Exchange Commission (SEC) requires public corporations to file annual reports. They reveal if the company's earnings and sales are higher or lower than expectations.

The annual report is composed of four (4) financial statements: the income statement, the balance sheet, the cash flow statement, and the statement of stockholders' equity.