Annual reports are in a sense, evaluations of management's performance but since they are prepared by management they are likely to:
A)exclude the details of management discussion and analysis.
B)portray the firm's past performance in a most favorable light.
C)give the shareholders the opportunity to objectively evaluate management's day-to-day performance during the past year.
D)exclude the details of the minority interests groups.

Question

Quizplus · Accepted Answer

Annual reports may not provide an entirely objective evaluation of management's performance as they are prepared by management themselves. Therefore, they are more likely to present the firm's past performance and current position in a favorable light, rather than objectively evaluating management's day-to-day performance during the past year.

Annual Reports Are in a Sense, Evaluations of Management's Performance