Question

A comprehensive annual financial report (CAFR) prepared in conformity with GASB recommendations should include which of the following sections?

a. Letter of transmittal, management's discussion and analysis (MD&A), and financial.
b. Introductory, financial, and statistical.
c. Introductory, MD&A, and financial.
d. Letter of transmittal, financial, and supplementary.

Answer 1

A comprehensive annual financial report (CAFR) prepared in conformity with GASB recommendations should include sections such as the letter of transmittal, management's discussion and analysis (MD&A), financial statements, and supplementary information.

Step-by-step explanation:

A comprehensive annual financial report (CAFR) prepared in conformity with GASB recommendations should include the following sections:

1. Letter of transmittal: This is a letter or email explaining the nature of the report and signed by those responsible for writing it.
2. Management's discussion and analysis (MD&A): This section provides an overview of the financial statements, discussing the entity's financial results and condition.
3. Financial statements: This section includes the balance sheet, income statement, statement of cash flows, and statement of changes in net position.
4. Supplementary information: This section may include additional information or schedules that provide further detail on the financial statements.