Question

1. What is the difference between a Form 10–K and a Form 10–Q? (Provide Detailed Description)

2.What was the purpose of creating the EDGAR system?

Answer 1

1)

The form which is filed annually with the SEC is form 10-k where the form which is filed quarterly that is 3 months in a year is formed 10q.

However a form 10q is not required to be filed at the end of the fourth quarter as a form K will be filed shortly after also a form 10-q is not obligated to be audited by an independent CPA

The information which are provided by both the forms 10k and 10q and different to each other summer give some instructions are given below

• Income statement must account for the recent quarter and year to date to compare the previous period is past years.
• Indusion of the statement of cash flows but only for the year to date and previous year’s period.
• A balance sheet for the most recent water and Earth II balance sheet for the previous year end.
• Include any needed disclosure of the current period.

2)

Purpose of creating the EDGAR system

As the increase in the reliability of Information retrieval over the interest a system was designed to make ease the burden of the travel by the SEC. the system develop was the electronic data gathering, analysis and retrieval system. it was started in 1984 and the main purpose of the formation of this was for the production of the paper filing and to submit and store in electronic through computer or CD space.

Investors now had the ability to access information electronically and could make decisions in minutes wherever they are located.

Now a day’s EDGAR made the SEC website available for filing within 24 hours. This increase financial reporting transparency.