The Daily Technical #06

Good morning. Welcome to the sixth edition of The Daily Technical. You’re here for one reason so let’s dive in.

First time reading? Sign up here.

OVERVIEW OF YESTERDAY’S QUESTION
What is the difference between the 10-K and 10-Q?

When answering this question, break it down three key parts:

10-K: Start by outlining that the 10-K is an annual report for public companies, filed with the SEC. Highlight the importance of the document, as it includes a full overview of the business operations, commentary on recent performance by management, risk factors, disclosures on changes in accounting policies – and most importantly, the three core financial statements with supplementary data.

10-Q: The 10-Q, on the other hand, is a quarterly report. It’s less comprehensive than the 10-K, with the focus being on the quarterly financials with brief sections for MD&A and supplementary disclosures.

Differences: Emphasize that the 10-K is audited, while the 10-Q is only reviewed. Also, note that the filing deadlines differ: ~60-90 days after the fiscal year for the 10-K, and ~40-45 days after each quarter for the 10-Q.

Common Mistakes

1. Confusing the purpose of each report – A common error is mixing up the purpose of the two forms. Remember, the 10-K is for the entire year, while the 10-Q focuses on a single quarter.

2. Overlooking the audit requirement – Some students forget to mention that the 10-K is audited and the 10-Q isn’t. This difference is crucial because it speaks to the reliability of the data.

TL;DR

• 10-K = annual, audited, comprehensive report; 10-Q = quarterly, unaudited, shorter update.

• The 10-K is like a yearbook, the 10-Q is like a quarterly update.

• Don’t forget the timeline differences: ~60-90 days for the 10-K vs. ~40-45 days for the 10-Q.

TODAY’S QUESTION
What is deferred revenue? 

Type your answer here. Within 90 seconds you’ll have custom feedback in your inbox.

THAT’S A WRAP
Before You Go: Share The Daily Technical With a Friend

The best way to help support us is to share The Daily Technical with a friend. Make sure you send them your unique referral link below!

See you tomorrow,

The HirePrep Team