Purpose Of A Company 's 10 K Report

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Purpose of a company’s 10-K
The 10-K report is an annual report. The purpose of the report is to give a lot of information in detailed from like a picture of the organization 's business, it shows the risks and also the operating and financial results for the year. The company will also use this report to help them see what is helping them and what is not helping them (Security, 2011).
A lot of organizations must report a 10-K every year and they must file it with the U.S. Securities and Exchange Commission. Other organization will file another form to the U.S. Securities and Exchange Commission. The U.S. Securities and Exchange Commission mandates that there are certain topics that must be on the 10-K form, and that organization send it to them annually and also to their shareholders annually (Security, 2011).

How it interprets the firm’s financial strength
The 10-K will show Item 8, which is the financial statements and Supplementary data. This will have the company’s incomes statement, the income statement could also be called the earnings statement or even the operations statement, and it will also have the balance sheet, the cash flow statement, and a statement for the stockholders equity. When you have the financial statement there will also be an explanation as to why and how they came up with all the numbers (Security, 2011).
When owning a business you must know your financial strength, everyone including managers, corporate, investors and also lenders want to

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