Principles Of Financial Accounting

QUESTION 1:Describe how the annual report differs from the 10-K. What is contained in the annual report that is not in the 10-K? What is contained in the 10-K that is not in the annual report?SOLUTION 1:The annual report of Apple Inc. is analyzed.An annual report is used to show the state of the company to shareholders and give them an idea about the company’s activities in past year. It is treated as unofficial and its main aim is to communicate so it acts as public relation function. A 10K report is an official document that is required to be filed with Securities & Exchange Commission by a publicly traded company. In contrary to annual report, it is filed to fulfill a regulatory requirement for transparency. It does not contain any of the management spin which is generally contained in annual report of the company. The annual report is an informal document so the content differs from company to company depending upon level of importance given by shareholders to any content. The annual report of Apple Inc. included list of officers, financial picture which is not contained in 10 K report. The form 10-K report contained comprehensive