To What Extent Should Economic Factors Be Discussed in Management's

question 33

Multiple Choice

To what extent should economic factors be discussed in Management's Discussion and Analysis (MD&A) ?

• A)major economic factors affecting operating results should be discussed in MD&A
• B)economic factors affecting operating results should not be discussed in MD&A
• C)economic factors affecting operating results should be discussed in MD&A,provided the auditor extends his/her opinion to the MD&A
• D)economic factors should be discussed in MD&A,provided they are also discussed in the notes

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Definitions:

Maturity Value

Maturity Value is the amount payable to an investor at the maturity date of a financial instrument, typically including the principal and the interest.

Note Receivable

A written promise to pay a specified amount, usually interest-bearing, that is recognized as an asset on the lender's balance sheet.

Promissory Notes

Written promises to pay a specified sum of money to a certain person or entity at a defined time or on demand.

Legal Claim

A demand for compensation, payment, or property by a person or entity asserting a right against another in a court of law.