The Management Discussion and Analysis section of a company's annual report covers which of the following three items:
A) Income statement, balance sheet, and statement of owners' equity.
B) Income statement, balance sheet, and statement of cash flows.
C) Changes in the stock price, mergers, and acquisitions.
D) Liquidity, capital resources, and results of operations.

Question

Quizplus · Accepted Answer

The Management Discussion and Analysis (MD&A) section of a company's annual report covers information about the company's liquidity, capital resources, and results of operations. This section provides insights into the management's perspective on how the company has performed during the period, as well as trends, risks, and uncertainties that could affect its future performance. It helps investors and stakeholders understand the company's financial health and strategy, and make informed decisions. Hence, option D is the correct answer. Option A is incorrect because it mentions the financial statements, which are typically presented separately in the annual report. Option B is incorrect because it only includes the financial statements and ignores other important information. Option C is incorrect because it only includes information about market events, but not about the company's operations and financial performance.

The Management Discussion and Analysis Section of a Company's Annual