- CFA Exams
- CFA Exam: Level I 2021
- Study Session 6. Financial Reporting and Analysis (1)
- Reading 19. Introduction to Financial Statement Analysis
- Subject 3. Other Financial Information Sources
CFA Practice Question
In the annual report, where can a financial analyst find a discussion of the reasons for sales growth or decline?
B. Auditor's report
C. Notes to the financial statements
D. On the face of the income statement
A. Management discussion and analysis
B. Auditor's report
C. Notes to the financial statements
D. On the face of the income statement
Correct Answer: A
The management discussion and analysis section of the annual report or Form 10-K covers management's opinion of the reasons for sales growth or decline.
User Contributed Comments 5
| User | Comment |
|---|---|
| kalps | MDA or 10-k covers management's opinions for sales growth or decline |
| Lucas24 | What about option C, wouldn't notes also provide more infor |
| Adi8232 | discussion is the keyword, notes just provide info |
| anupshah9 | Adi8232 ... good observation... |
| F79KHAN | Form 10 K? |