In the United States, regulatory requirements applicable to publicly traded firms require the inclusion of a(n) _____, in which management discusses operating results, liquidity (sources and uses of cash), capital resources, and reasons for changes in profitability and risk during the past year.
A)Balance sheet or statement of financial position
B)Management's Discussion and Analysis
C)Income statement or statement of profit and loss
D)Statement of cash flows.
E)Statement of shareholders' equity.

Question

Quizplus · Accepted Answer

The given description matches with the Management's Discussion and Analysis (MD&A) section of the annual report, which provides a narrative analysis of a company's financial performance and its future prospects. It includes information on operating results, liquidity, capital resources, and risk factors that have affected the company's financial statements. Therefore, option B is the correct answer.

In the United States, Regulatory Requirements Applicable to Publicly Traded