Final answer:
Financial reporting is the process of determining how and at what cost money is allocated among competing interests. It involves presenting financial statements and other relevant information to stakeholders, such as investors, creditors, and regulatory bodies.
Step-by-step explanation:
Financial reporting is the process of determining how and at what cost money is allocated among competing interests. It involves presenting financial statements and other relevant information to stakeholders, such as investors, creditors, and regulatory bodies.
Financial reports provide a comprehensive view of a company's financial performance and position, allowing interested parties to make informed decisions. These reports typically include information on revenue, expenses, assets, liabilities, and equity.
An example of financial reporting is the annual report, which is a document that provides a summary of a company's financial results and activities for a specific period. This report includes financial statements, such as the income statement, balance sheet, and cash flow statement, as well as other relevant information, such as the management's discussion and analysis and the auditor's report.