1. In addition to the financial statements and the accompanying notes, corporate annual reports normally include which of the following?

a. Management Discussion and Analysis

b. Report on Internal Control

c. Report on Fairness of the Financial Statements

d. All of these choices are correct.

2. Typical items included in the MD&A would include all the following except

a. management's analysis and explanations of any significant changes between the current and prior years' financial statements.

b. important accounting principles or policies that could affect interpretation of the financial statements, including the effect of changes in accounting principles or the adoption of new accounting principles.

c. management's assessment of the company's liquidity and the availability of capital to the company.

d. a worksheet.

3. An extraordinary item is defined as an event or transaction that is

a. unusual in nature.

b. infrequent in occurrence.

c. both unusual in nature and infrequent in occurrence.

d. None of these choices are correct.

4. Generally accepted accounting principles require that unusual items

a. be reported within operating income on the income statement.

b. be reported separately on the income statement.

c. not be reported on the income statement.

d. None of these choices are correct.