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Financial Terms

Annual Report

This is a formal financial statement issued each year by a corporation. The annual report includes a description of the corporation's operations and the following information:

A balance sheet

An income statement

A cash flow statement

This information shows the assets, liabilities, revenues, expenses and earnings to give shareholders information on how the corporation's income fared during the year.

SEC rules require that the corporation's annual report be distributed to all shareholders. A more detailed version of this report is called a 10-K.

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