Uses Of Business Financial Statements By Various Stakeholders
FINANCIAL ANALYSIS OF APPLE COMPANY
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Introduction to Apple Company
Apple Inc. is a California corporation. The company was established back in 1977. The main objective of the company is manufacturing and marketing of personal computers, media and mobile communication devices, portable digital media players, variety of related software, provision of network solutions and marketing of third party applications and content. The company also deals with the distribution of the third party products which are compatible with company products. The third party products involves both hardware and software products. Majority of the company products can be accessed and purchased through the various online stores as well as their website.
Methods used to account for assets, liabilities, and shareholder equity by Apple Company
Apple companies follow GAAP accounting techniques. Apple uses straight line differentiation principle or method account for its tangible property. Intangible assets are amortized for over considerable life time. The company uses the principle of subtracting total liabilities from the total assets. The alternative method which provides the same results involves calculating the capital share in addition to the retained earning followed by subtracting treasury shares. The company accounting policies are similar to the ones applied by the major competitors HP and Dell companies. Apple recognizes any expense once it has occurred. The company adopts FIFO technique when accounting for the inventories. Apple uses expenses manipulation deals when estimating warranty. Since the company was established, the companies allocates two 2% for the net sales to cater for the warrants. The company’s investment opportunities available for offer securities are reported at a fair value.
Approach taken by Apple Company towards its internal controls
Apple is confined within GAAP and portray a key factors which can be
BY
AUTHOR:
COURSE:
TUTOR:
INSTITUTION:
DATE
Introduction to Apple Company
Apple Inc. is a California corporation. The company was established back in 1977. The main objective of the company is manufacturing and marketing of personal computers, media and mobile communication devices, portable digital media players, variety of related software, provision of network solutions and marketing of third party applications and content. The company also deals with the distribution of the third party products which are compatible with company products. The third party products involves both hardware and software products. Majority of the company products can be accessed and purchased through the various online stores as well as their website.
Methods used to account for assets, liabilities, and shareholder equity by Apple Company
Apple companies follow GAAP accounting techniques. Apple uses straight line differentiation principle or method account for its tangible property. Intangible assets are amortized for over considerable life time. The company uses the principle of subtracting total liabilities from the total assets. The alternative method which provides the same results involves calculating the capital share in addition to the retained earning followed by subtracting treasury shares. The company accounting policies are similar to the ones applied by the major competitors HP and Dell companies. Apple recognizes any expense once it has occurred. The company adopts FIFO technique when accounting for the inventories. Apple uses expenses manipulation deals when estimating warranty. Since the company was established, the companies allocates two 2% for the net sales to cater for the warrants. The company’s investment opportunities available for offer securities are reported at a fair value.
Approach taken by Apple Company towards its internal controls
Apple is confined within GAAP and portray a key factors which can be
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