能否详细讲解一下本题

问题如下：

Question Where might an analyst look for details covering the full extent of a company’s capital resources?

选项：

A.Balance sheet B.Notes to the financial statements C.Management discussion and analysis (MD&A)

解释：

Solution

1. Incorrect because the balance sheet discloses what an entity owns (assets), what an entity owes (liabilities), and the owners’ interest in the net assets of a company (equity) at a specific point in time. While the balance sheet can include a section summarizing non-current (long-term) liabilities, this usually includes just a single line item listing the total amount of a company’s long-term debt due after one year with no information about a company’s capital resources, including debt financing and off-balance-sheet financing.

2. Incorrect because, while the notes to the financial statements provide details about a company’s debt financing, it is the MD&A section that commonly provides information about its off-balance-sheet financing. The notes disclose the basis of preparation for the financial statements. The notes also disclose information about the accounting policies, methods, and estimates used to prepare the financial statements.

3. Correct because in the MD&A, management must highlight any favorable or unfavorable trends and identify significant events and uncertainties that affect the company’s liquidity, capital resources, and results of operations. The MD&A must also provide information about off-balance-sheet obligations and about contractual commitments, such as purchase obligations.

Introduction to Financial Statement Analysis

• describe the importance of regulatory filings, financial statement notes and supplementary information, management’s commentary, and audit reports