Question

A company that claims to be something it is not in a 10-k report is committing a kind of financial statement fraud.

a. True
b. False

Answer 1

Yes, it's true. A company providing false information in a 10-K report is committing financial fraud, violating laws and regulations with serious consequences.

Step-by-step explanation:

It's true that a company misrepresenting itself in a 10-K report is committing a form of financial fraud. A 10-K report is a comprehensive summary of a company's financial performance that is required by the U.S. Securities and Exchange Commission (SEC) and provides a thorough picture of a company's financial health. If a company deliberately provides false information or attempts to deceive investors in this report, it is engaging in financial statement fraud, which is illegal and subject to severe penalties.