Topics to Be Covered in the Management's Discussion and Analysis

question 3

Multiple Choice

Topics to be covered in the management's discussion and analysis

• A) Are limited to a specific list of topics in GASB Statement No. 34.
• B) Must, at a minimum, cover the specific list of topics in GASB Statement No. 34 but may include additional topics that management considers significant.
• C) Are determined based upon management's judgment.
• D) Can only include topics not in the specific list in GASB Statement No. 34 if agreed to by both management and the auditors.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from revenues.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made, prepared during the accounting cycle to ensure debits equal credits.

Financial Statement Column(s)

Refers to the categorized sections within financial statements that display associated financial data, such as assets, liabilities, revenues, and expenses.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.