Final answer:
The MD&A section of a company's report must include an overview of the financial statements, providing context, discussing both positive and negative aspects, and giving insight into future prospects.
Step-by-step explanation:
The Management Discussion and Analysis (MD&A) is a section within a company's annual report or quarterly filing where management provides an overview of the previous period's operations, financial condition, and future prospects. The correct answer to the question is a. Overview of the financial statements. The intention of the MD&A is to give investors a narrative context through which to review the financial data, understand strategy, and set expectations.
It is a regulatory requirement for publicly traded companies in the United States and serves to enhance the transparency and provide greater detail on the numbers in the financial reports. It does not include jokes and anecdotes (option b), nor does it only include positive financial information (option c). Instead, the MD&A should present a balanced view, discussing both favorable and unfavorable events and conditions that impact the firm's performance and outlook.