Question

The basic financial statements include all of the following except: Select one: a. Management's Discussion & Analysis b. Fund-basis financial statements c. Notes to the financial statements d. Government-wide statements e. The basic financial statements include all of the above items

Answer 1

Answer:

a. Management's Discussion & Analysis

Explanation:

The purpose to make Management's Discussion & Analysis is to use this information internally for the improvement of business operations. That is why basic financial statements do not include the Management's Discussion and Analysis because these are internal reporting method and it is not disclosed to outside stakeholder of the company. It is also not required by law to disclose the Management reporting to the stakeholders and required for the financial reporting.