QUESTION 4 Which of the following is CORRECT regarding Management\'s Discussion

Question

QUESTION 4 Which of the following is CORRECT regarding Management's Discussion and Analysis (MD&A;)? O A. The MD&A; should present condensed financial information from the government-wide statements for the current and prior year. B. Since it is considered supplementary iinformation, it is optional whether a government prepares it. CThe MDSA is management's presentation, so t should present t the government in the best light possible., omitting negative aspects that could be detrimental to the government's credit rating. O D. The MD&A; is prepared by management based on information known to management as of the last day of the f

Explanation / Answer

CORRECT - D

Explanation:-

The Management's Discussion and Analysis(MD&A) is the section of a company's annual report which includes various topics including Macro-Economic Performance of the industry, the Company’s Vision and Strategy and some key financial indicators and their rationale.

A. The same is not correct as not only MD&A contains the financial data but it also contains various non-financial information such as executive Overview, Discussion of Results, and others.

B. This is to be Prepared by all listed companies under SEC Filling-10K

C. It Should Contain Each and Everything which can affect the position of the company.

D. TRUE- As it is Prepared by Managment and contains the Outlook of Managment towards the Company.

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