Which of the Following Is True Regarding Management's Discussion and Analysis

question 22

Multiple Choice

Which of the following is true regarding Management's Discussion and Analysis (MD&A) ?

• A) MD&A should provide an objective analysis of the financial activities based on currently known facts, decisions, or conditions.
• B) MD&A should disclose total assets and liabilities for all substantial component units.
• C) Management should provide a cash flow projection for at least three consecutive fiscal years in MD&A.
• D) MD&A is optional for city governments.
• E) MD&A is the final element of the introductory section of the comprehensive annual financial report (CAFR).

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Definitions:

Trust Fund

A trust fund is a legal arrangement in which assets are held by a trustee for the benefit of another party, often used for estate planning or to manage assets for individuals or charities.

Demonstrative Legacy

A bequest in a will that specifies a particular asset or monetary source to fund the gift.

Probate

The legal process of administering a deceased person's estate, including the resolution of any claims and the distribution of assets under a will.