Mastering Financial Statements: Essential Reading Guide

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Correction history

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1. 28 July 2026 · corrected by Emir Baycan

   Corrected one factual error: quarterly 10-Q filings are not audited (they are reviewed but not audited by the company's outside auditor); only the annual 10-K includes fully audited financial statements. Corrected the claim that both filing types 'include audited financial statements.' The current-ratio ('above 1.5 is generally healthy, though this varies by industry') and free-cash-flow (correctly noted as not a GAAP line item, calculated from operating cash flow minus capital expenditures) sections were already appropriately qualified and accurate.

   Before

   The article stated that both 10-Q quarterly and 10-K annual SEC filings include audited financial statements.

   After

   Corrected the claim to note only the annual 10-K includes fully audited financials, while the 10-Q is reviewed but not audited.

   Why: This is a standard, well-documented distinction in SEC reporting requirements. Correction fixes the factual error rather than adding new sources.

   View the full record →

Full contribution timeline

1. Correction 28 July 2026

   Emir Baycan: Corrected one factual error: quarterly 10-Q filings are not audited (they are reviewed but not audited by the company's outside auditor); only the annual 10-K includes fully audited financial statements. Corrected the claim that both filing types 'include audited financial statements.' The current-ratio ('above 1.5 is generally healthy, though this varies by industry') and free-cash-flow (correctly noted as not a GAAP line item, calculated from operating cash flow minus capital expenditures) sections were already appropriately qualified and accurate.

   Proof record →