Question

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:

Question 91 options:

A)	It is outside the general purpose federal financial report and is optional, not required.

B)	There are no significant differences.

C)	It is a part of the basic financial statements and, as a result, it is audited along with the financial statements.

D)	It includes information about the agency's performance goals and results in addition to financial activities.

Answer 1

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 it includes information about the agency's performance goal and results in addition to financial activities.The purpose of the Management’s Discussion and Analysis (MD&A) is to provide an objective and easily readable analysis of the government’s financial activities, based on currently known facts, decisions, or conditions