Which of the Following Statements Regarding Management's Discussion and Analysis

question 11

Multiple Choice

Which of the following statements regarding Management's Discussion and Analysis is true?

• A) MD&A is required only for Proprietary Fund Financial Statements.
• B) MD&A is reported in the statistical section of the annual report.
• C) MD&A is required for comprehensive annual financial reports.
• D) MD&A for state and local government financial statements must include an analysis of potential, untapped revenue sources.
• E) MD&A is an optional inclusion for state and local government financial statements.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Income

The financial gain or money received by an individual or entity, typically through wages, investments, or business operations.

Normal Goods

Goods for which demand increases as the income of the consumer increases.

Current Consumption

The portion of income or wealth that is spent on goods and services in the present, as opposed to saving for future expenditure.