Which of the Following Is Most Correct with Regard to Management's

question 87

Multiple Choice

Which of the following is most correct with regard to Management's Discussion and Analysis MD&A?

• A) State and local governments are required to provide an MD&A.
• B) Federal agency financial reports are required to provide an MD&A.
• C) Both state and local governments and federal agencies are encouraged, but not required to provide an MD&A.
• D) Both state and local governments and federal agencies are required to provide an MD&A.

---

Definitions:

Adjusting Entries

Entries made in accounting to update the records for any incomes and expenses that have been incurred but not yet recorded.

Financial Statements

Structured reports detailing the financial performance, position, and cash flows of an organization, typically including the balance sheet, income statement, and statement of cash flows.

Accounting Cycle

The series of steps followed by an entity to track and manage its financial transactions, from the initial transaction recording to the final financial statement preparation and closing entries.

Closing

The process of finalizing accounts at the end of an accounting period by summarizing revenues and expenses and indicating net profit or loss.