ExpertMedium1 markMultiple Choice
CPA · Question 07 · Area I: Financial Reporting
Under SEC reporting requirements, which of the following items is required to be included in Part II, Item 7 of Form 10-K?
Under SEC reporting requirements, which of the following items is required to be included in Part II, Item 7 of Form 10-K?
Answer options:
A.
Legal Proceedings
B.
Risk Factors
C.
Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
D.
Executive Compensation
How to approach this question
Memorize the structure of Form 10-K. Part II contains financial data, including MD&A (Item 7) and Financial Statements (Item 8).
Full Answer
C.Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)✓ Correct
Form 10-K Part II, Item 7 is Management's Discussion and Analysis (MD&A). Item 8 is Financial Statements. Item 1 is Business. Item 1A is Risk Factors.
Common mistakes
Confusing Item 7 (MD&A) with Item 8 (Financial Statements) or Item 1 (Business).
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