The Management Discussion and Analysis Section of an Annual Report

question 38

Multiple Choice

The Management Discussion and Analysis Section of an annual report:

• A)is required by the SEC.
• B)is optional but normally included in the annual report.
• C)is required by the SEC only if the company has suffered from unfavorable trends or there are significant uncertainty concerning liquidity of the company.
• D)is required by the SEC only if they have a qualified audit opinion.

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Definitions:

Merchandise Inventory

Goods and products that a retailer or wholesaler has on hand to sell to customers.

Buyer

A person or organization that purchases goods or services for personal use or consumption.

Asset

Assets possessed by a corporation that hold financial worth and can yield advantages in the future.

Receiving Report

A document prepared by the receiving department to record and confirm the delivery of goods from a supplier.