PRSA APR PRACTICE SOLUTION 2026 TEST
BANK VIEW AHEAD
⩥ 10-K report (annual report). Answer: An annual report that provides a
comprehensive overview of a company. The 10-K must be filed within
60 days after the close of the company's fiscal year. The report contains
crucial information, such as company's history, organizational structure,
equity, holdings, earnings per share, subsidiaries, footnotes, corporate
exhibits, etc. Key section is Management's Discussion and Analysis of
Financial Conditions (MD&A).
⩥ Management's Discussion and Analysis of Financial Conditions
(MD&A). Answer: A key section of the 10-K annual report, the MD&A
is where companies list strengths, weaknesses, opportunities, and threats
facing the company and its industry.
⩥ 10-Q report (quarterly report). Answer: A quarterly financial report
containing unaudited financial data. The 10-Q is due 35 days after the
close of each of the first three fiscal quarters. There is no filing after the
fourth quarter because that is when the 10-K is filed.
⩥ 8-K report (current report). Answer: 8-K filings are filed for
unscheduled material or corporate events of importance to the
shareholders and the SEC. this is a great report to read to determine any
significant problems the company may be facing, such as litigation,
executive malfeasance, or other problems.
, ⩥ Proxy statements. Answer: Otherwise known as Form Def 14A, the
proxy statement is produced for the benefit of shareholders prior to the
Annual Meeting of Shareholders so that they can make informed
decisions about matters due to be discussed at the Annual Meeting.
Issues covered can include proposals for new additions to the board of
directors, information on directors' and executives' salaries, info on
bonus and option plans for directors and key managers, and any
declarations made by management.
⩥ Regulation Fair Disclosure (Regulation FD). Answer: Requires that all
publicly traded companies disclose material information to all investors
at the same time. Also opened quarterly analyst conference calls to small
investors.
⩥ Sarbanes Oxley. Answer: Legislation that covers corporate auditing
accountability, responsibility, and transparency. Provisions within this
law affect how information is disclosed. PR must know what a company
must disclose and when.
⩥ Securities Act of 1933 and Security Exchange Act of 1934. Answer:
Enacted following the 1929 stock crash, these acts contain checks and
balances for securities-related actions. Certain sections of these laws
directly relate to PR practice.
BANK VIEW AHEAD
⩥ 10-K report (annual report). Answer: An annual report that provides a
comprehensive overview of a company. The 10-K must be filed within
60 days after the close of the company's fiscal year. The report contains
crucial information, such as company's history, organizational structure,
equity, holdings, earnings per share, subsidiaries, footnotes, corporate
exhibits, etc. Key section is Management's Discussion and Analysis of
Financial Conditions (MD&A).
⩥ Management's Discussion and Analysis of Financial Conditions
(MD&A). Answer: A key section of the 10-K annual report, the MD&A
is where companies list strengths, weaknesses, opportunities, and threats
facing the company and its industry.
⩥ 10-Q report (quarterly report). Answer: A quarterly financial report
containing unaudited financial data. The 10-Q is due 35 days after the
close of each of the first three fiscal quarters. There is no filing after the
fourth quarter because that is when the 10-K is filed.
⩥ 8-K report (current report). Answer: 8-K filings are filed for
unscheduled material or corporate events of importance to the
shareholders and the SEC. this is a great report to read to determine any
significant problems the company may be facing, such as litigation,
executive malfeasance, or other problems.
, ⩥ Proxy statements. Answer: Otherwise known as Form Def 14A, the
proxy statement is produced for the benefit of shareholders prior to the
Annual Meeting of Shareholders so that they can make informed
decisions about matters due to be discussed at the Annual Meeting.
Issues covered can include proposals for new additions to the board of
directors, information on directors' and executives' salaries, info on
bonus and option plans for directors and key managers, and any
declarations made by management.
⩥ Regulation Fair Disclosure (Regulation FD). Answer: Requires that all
publicly traded companies disclose material information to all investors
at the same time. Also opened quarterly analyst conference calls to small
investors.
⩥ Sarbanes Oxley. Answer: Legislation that covers corporate auditing
accountability, responsibility, and transparency. Provisions within this
law affect how information is disclosed. PR must know what a company
must disclose and when.
⩥ Securities Act of 1933 and Security Exchange Act of 1934. Answer:
Enacted following the 1929 stock crash, these acts contain checks and
balances for securities-related actions. Certain sections of these laws
directly relate to PR practice.
