The Financial Accounting Standards Board has provided guidance on disclosures of transactions between related parties, for example, transactions between subsidiaries of a common parent. GAAP regarding related-party transactions requires all of the following disclosures except

a. The nature of the relationship involved.

b. A description of the transactions for each period an income statement is presented.

c. The dollar amounts of transactions for each period an income statement is presented.

d. The effect on the cash flow statement for each period a cash flow statement is presented.

2. The Managements Discussion and Analysis (MD&A) section of an annual report

a. Includes the company presidents letter.

b. Covers three financial aspects of a firms business: liquidity, capital resources, and results of operations.

c. Is a technical analysis of past results and a defense of those results by management.

d. Covers marketing and product line issues.

3. Windham Company has current assets of $400,000 and current liabilities of $500,000. Windham Companys current ratio would be increased by

a. The purchase of $100,000 of inventory on account.

b. The payment of $100,000 of accounts payable.

c. The collection of $100,000 of accounts receivable.

d. Refinancing a $100,000 long-term loan with short-term debt