Question

Which of the following is not required to be discussed in the Management Discussion and Analysis of the Financial Condition and results of Operations?

(a) Liquidity.
(b) Capital resources.
(c) Operations.
(d) Earnings projections.

Answer 1

The Management Discussion and Analysis (MD&A) section of a company's financial statements is required to discuss important information about the company's financial condition and results of operations.

Step-by-step explanation:

The Management Discussion and Analysis (MD&A) section of a company's financial statements is required to discuss important information about the company's financial condition and results of operations. This information helps investors and other stakeholders understand the company's performance and prospects.

Three of the items that are required to be discussed in MD&A are:

1. Liquidity: This includes the company's ability to meet its short-term obligations and manage its cash flow.
2. Capital resources: This includes the sources and uses of the company's capital, such as debt and equity financing.
3. Operations: This includes the company's key operating activities, such as sales, production, and marketing.

However, one item that is not required to be discussed in MD&A is earnings projections. Earnings projections are forward-looking statements that involve uncertainty and are not required to be included in the MD&A section.