Essay about Acc/290 Financial Reporting

861 Words Nov 6th, 2013 4 Pages
Financial Reporting – Apple, Inc.


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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When a company such as Apple has cash equivalents, the short-term investment should have a low risk in changing value. The short-term investments acquired by Apple are normally near their maturity, which relates to their values remaining steady.
On September 29, 2012 Apple had a 12% increase in cash, cash equivalents, and short-term marketable securities combined from the previous year. At the end of the September 24, 2011 accounting period Apple reported $9,815,000 in cash and cash equivalents, and the sum of 16,137,000 in short-term marketable securities. Apple reported at the end of the September 29, 2012 accounting period the sum of $10,746,000 for cash and cash equivalents, and the total of $18,383,000 for short-term marketable securities
Liabilities consist of the total debts and financial obligations a business owe its creditors. They consist of accounts payable, expenses, income tax payable, employee benefits payable, and other liabilities (Kimmel, Weygandt,& Kieso, 2010). Apples total liabilities for 2012 were $57,854,000,000. For the previous year, Apples total liabilities were $39,756,000,000.
Use and Users of Financial Data
The information found in financial statements outlines the financial activities of that company, and can help managers, creditors, and investors make many important decisions.