Question
Which of the following is not true about Form 8-K: The form describes changes in management, products , acquisitions, or legal actions. Companies are required to file it for the first three quarters of the fiscal year. Companies are required to file it within 15 days of a significant event. The form is important because it alerts investors to events that might affect a company's fundamental value.
Answer
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Answer
Companies are required to file it for the first three quarters of the fiscal year.
Explanation
## Step 1:Understand the purpose and requirements of Form 8-K. Form 8-K is a report that public companies in the United States are required to file with the Securities and Exchange Commission (SEC) for significant events such as bankruptcy, changes in corporate governance, acquisitions or dispositions of assets, and other material developments.## Step 2:Evaluate each statement based on the understanding of Form 8-K.- The form describes changes in management, products, acquisitions, or legal actions: This statement is true. Form 8-K can cover an array of business events from changes in company's control to departure of key executives.- Companies are required to file it for the first three quarters of the fiscal year: This statement is false. Forms 10-Q and 10-K which is filed every quarter to cover the three quarters and for the annual financials, respectively. Form 8-K can be filed anytime during the year – irrespective of the company’s fiscal year – when the company has something significant to disclose that shareholders and potential investors should know about.- Companies are required to file it within 15 days of a significant event: This statement is incorrect because Form 8-K must be filed very quickly after a significant event occurs -- generally, within four business days, not 15 days.- The form is important because it alerts investors to events that might affect a company's fundamental value: This statement is true. Form 8-K alerts investors to significant events that could impact a company's value.