Final answer:
The statement about the firm's annual report only containing two pieces of information is false. An annual report includes additional key sections, such as the company's overview and management's discussion and analysis, which are important for investors and stakeholders.
Step-by-step explanation:
The statement that a firm's annual report only contains financial statements and the notes to the financial statements is false. An annual report typically includes additional information such as the company's overview, management's discussion and analysis (MD&A), and a letter from the Chief Executive Officer (CEO). The financial statements and the accompanying notes are fundamental components; however, they represent only a part of the comprehensive annual report.
Investors and stakeholders rely on this comprehensive document to make informed decisions, as it provides a wider view of the firm's performance, governance, and future outlook. Details about the company's products, revenues, costs, and profits, as well as insights into corporate strategies and potential risks, help to ensure transparency and build trust with financial capital providers, such as bondholders and shareholders.