Acc/290 Financial Reporting Essay

Words: 840
Pages: 4

Financial Reporting – Apple, Inc.

ACC/290

Apple Inc. is a manufacturer and developer of consumer electronics, computers, and software. The company is headquartered in Cupertino, California and was, until recent, headed by founder and CEO, Steve Jobs. Apple is a well-recognized company that provides an alternative to the traditional personal computer, and personal devices.
Assets and Liabilities of Apple The four different types of assets are Current Assets, Long-Term Assets, PPE (Property, Plant & Equipment), and Intangible Assets. Team B’s task was to define current assets. A current asset is an asset which can either be converted to cash or used to pay current liabilities within one year. Typical current assets include
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Employees can use the information to determine whether the company has a secure future and can provide the compensation and benefits they need. Creditors can use the information to determine a company’s ability to repay loans. Investors can use the information to predict a company’s future income and decide whether the company is safe to invest in.
Analyzing the assets of a company can show a company’s strength or reveal its weakness. The same information can be found by analyzing a company’s liabilities. A company with few or low assets and high liabilities could indicate a company is in trouble. Conversely, a company with large or many assets and low liabilities indicates a strong company that is prospering and has the ability to grow. Other information can be found by analyzing a company’s cash and cash equivalents. A company with high levels of cash might indicate a company that is not investing and making proper use of its assets. However, a company with a healthy amount of cash and several long-term and short-term investments shows a company that is focused on its future. Analyzing the information found in financial statements can be useful to all users whether internal or external (Kimmel, Weygandt,& Kieso, 2010).
Conclusion
The balance sheet contains information that internal and external users can reference when making decisions with regard to the company it is for. Apple was compliant with the information it submitted, and the