Question

Q1 :Which financial statement will give you the details of firm operations?

Q2: Where can you find information on corporate executive compensation?

Answer 1

1

Profit and Loss statement is the financial statement that gives details of firm's operations.

It summarizes the revenues, costs and expenses incurred during a specified period, usually a fiscal quarter or year.

P&L statement is also known as the income statement. These records provide information about a company's ability or inability to generate profit by increasing revenue, reducing costs or both.

Some refer to the P&L statement as a statement of profit and loss, income statement, statement of operations, statement of financial results or income, earnings statement and expense statement.

The following are the main accounts that can be seen in Profit & Loss Account statement

• Sales Revenue
• Cost of Goods Sold
• Gross Profit
• Selling, General, and Administrative Expenses
• Depreciation Expense
• Interest Expense
• Tax Expense.
• Net Income

2

The information regarding corporate executive compensation can be found appended to the Annual Report.

An annual report is a comprehensive report on a company's activities throughout the preceding year. Annual reports are intended to give shareholders and other interested people information about the company's activities and financial performance.

Most jurisdictions require companies to prepare and disclose annual reports, and many require the annual report to be filed at the company's registry. Companies listed on a stock exchange are also required to report at more frequent intervals (depending upon the rules of the stock exchange involved).

Typical annual reports will include:

• General corporate information
• Operating and financial review
• Director's Report
• Corporate governance information
• Chairpersons statement
• Auditor's report
• Contents: non-audited information
• Financial statements, including
  • Balance sheet also known as Statement of Financial Position
  • Income statement also profit and loss statement.
  • Statement of changes in equity
  • Cash flow statement
• Notes to the financial statements
• Accounting policies
• Other features

The section of Corporate Governance details corporate executive compensation.