Accrual versus cash basis of accounting PepsiCo, Inc. (PEP) is a food and beverage company with a variety of brands, including Frito-Lay, Gatorade, Pepsi-Cola, and Tropicana. O recent financial statements, Pepsi reported net income of $7,679 million and $2,710 million of depreciation expense. If Pepsi had used the cash basis of accounting, its net income would be approximately $11,616 million. Why would Pepsi's net income be higher if it had used the cash basis? Because depreciation expense a cash payment, it is net income of $11,616 million. As a result, Pepsi's accrual net income of $7,679 million is net income of $11,616 million. A majority of this difference of $ million. million in arriving at Pepsi's estimated cash-bas its estimated cash-basis depreciation expense of $2,710
Accrual versus cash basis of accounting PepsiCo, Inc. (PEP) is a food and beverage company with a variety of brands, including Frito-Lay, Gatorade, Pepsi-Cola, and Tropicana. O recent financial statements, Pepsi reported net income of $7,679 million and $2,710 million of depreciation expense. If Pepsi had used the cash basis of accounting, its net income would be approximately $11,616 million. Why would Pepsi's net income be higher if it had used the cash basis? Because depreciation expense a cash payment, it is net income of $11,616 million. As a result, Pepsi's accrual net income of $7,679 million is net income of $11,616 million. A majority of this difference of $ million. million in arriving at Pepsi's estimated cash-bas its estimated cash-basis depreciation expense of $2,710
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process
Section: Chapter Questions
Problem 31E
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub