Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 1 - Introduction to Financial Statements - Questions - Page 27: 18


The purpose of management discussion and analysis (MD&A) us to analyze various financial aspects of a company, including its ability to fund operations and expansion, its ability to pay near-term obligations and its results of operations.

Work Step by Step

Discussions and analysis of the management will cover the various aspects of the company's financial position, and performance. The management identifies the favorable and unfavorable situations to the company which are strengths, weaknesses, opportunities, and threats from the outside environment. The management discussions involve predictions, estimates, budgets, opinions for the operations and performance of the company. The analysis of the management will be needed for the company to improve performance and growth.
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