The management's discussion and analysis (MD&A) required in general purpose federal financial reporting is different than that required by GASB of state and local governments in that:
A) It includes information about the agency's performance goals and results in addition to financial activities.
B) It is outside the general purpose federal financial report and is optional, not required.
C) It is a part of the basic financial statements and, as a result, it is audited along with the financial statements.
D) There are no significant differences.

Question

Quizplus · Accepted Answer

The management's discussion and analysis required in general purpose federal financial reporting includes information about the agency's performance goals and results in addition to financial activities, which is not required by GASB of state and local governments. This makes choice A the correct answer. on the other hand, choice B is incorrect as the MD&A is a required component of the general purpose financial report, not an optional one. 
Choice C is also incorrect as the MD&A is not considered a part of the basic financial statements and is usually presented separately. 
Therefore, there are significant differences between the MD&A required in general purpose federal financial reporting and that required by GASB of state and local governments.

The Management's Discussion and Analysis (MD&A) Required in General Purpose