Essay about Acc/290 Financial Reporting

Items that can be converted into cash quickly are called current assets. These would include, cash on hand, inventory, short-term investments and accounts receivable. Liabilities are financial obligations that the organization owes. For example, short-term notes payable; loans that come due in less than one year and accounts payable; money owned for goods and services provided to the business.

Assets and liabilities are bifurcated in current and non-current. Current asset is defined as any asset which can be converted into cash readily and will be used within one accounting period normally 1 year e.g. Receivables, Inventory, Prepaid Expenses.

Current liabilities are “obligations that must be settled within 1 year or the operating cycle, whichever is longer” and are “usually satisfied by transferring a current asset.” (). It includes accounts payable; short-term notes payable, income tax payable, accrued expenses, and portion on long-term debt payable.

Liabilities are obligations that are the responsibility of the company and can be in the forms of loans that the company needs to pay or services that the company still needs to provide (Merritt, 2016). Liabilities are broken down into two main categories, current liabilities and long term liabilities (McClure, n.d.). Current liabilities are those obligations that will come due within the next year, while long term liabilities typically come due in the future, but not within the next 12 months (McClure, n.d.).

Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics and computer software products. The

Apple, Inc. is an electronics and software company based in California, USA. Originally known as Apple Computer, the company is familiar to most people as innovators of the personal computer as it is known today.

It has been established that it is crucial to be able to properly value a bond for finance. Two companies have been chosen to represent this action for this document Apple Inc. as well as IBM which are both in the technology sector and have long term debt, have bonds and also stocks available for sale. We are going to determine the length until maturity, the yield to maturity and then also the price of the bond today. While keeping this information in mind we can determine what time value of money illustrates about each bond. A credit rating has been assigned to each company and we can determine which company may be the better investment for the bank as well as the investor. In the

These liabilities are described as what the business or organization owes such as accounts payable, payroll taxes due, notes payable, and mortgages payable are all liabilities. Assets are economic resources that have expected future benefits to the business (Baker & Baker, 2000). It is described as what the business or organization owns or controls. This can include cash, accounts receivable, notes receivable, and inventory.

Assets are the resources that the organization has and the money generated. Liabilities are resources that are owed for services, supplies and other things that the organization has acquired. The ideal goal of any business is for the assets to be greater than the liabilities (Cleverly et. al.).

The company makes money through the investments they make in purchases, which is the source of cash and cash equivalents.

Assets are resources. Liabilities are the claims by creditors, and any remaining balance is what is owed to the stockholder of the business. This equation is represented on the financial statement known as the balance sheet. Companies also produce financial reports which help identify the flow of resources over time. Financial reports include “income statements, retained earnings statements, and the

Apple Inc. is an American multinational technology business headquartered in Cupertino, California, established by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to sketch, fabricate, and sell consumer electronics, computer software, and online services. Apple is the world 's second-largest information technology company after Samsung electronics, the world 's largest technology company by total assets. On November 25, 2014, Apple became the first U.S. Company to be treasured at over 700 billion dollars, besides being the largest publicly traded corporation in the world by market capitalization. Apple is a very successful producer of computer software and hardware, however it has demonstrated internal and external areas that need enhancement along with other areas that prove to be profitable.

The balance sheet and Income statement are the most important financial statements of the company that help conduct current analysis of company and evaluate its trends overtime. The balance sheet represents the company snapshots of its financial position on the last days of accounting period. Apple balance sheets, which represent a snapshot of its ending balances in asset, liability and equity account as of the date stated on the report, are changes each year from 2003 to 2014. On the other hand, the income statement shows its financial performance over 2003 to 2014. Apple basically ends its accounting period in September. Most of the long-term debts are in the form of the bonds. According to appleinsider.com, Apple recently issues a new euro bond worth about $2.26 billion with a maturity date on January 17, 2024 and coupon rate of 1.375% payable annually. The first payment will occur on January 17, 2016. Moody’s recently assigned a rating of Aa to Apple Inc. 's senior unsecured note issuance. Thus, Apple recent capital expenditure amount to 11,488 million according to morningstar.com. The analysis of financial statements is conduct to compare Apple with one of its closest rival Hewlett-Packard and twelve ratio were calculated. From table1 and chart1, the current ratio that determine the company ability to meet its short term obligation shows Apple’s current ratio is higher than that of Hewlett-Package from 2003 to 2014. That is, Apple is solvent than Hewlett Packard. Table

Apple Inc., more commonly referred to as just Apple, is a multinational technology company headquartered in California.

Apple Inc. is a globally recognised pioneer in the tech industry. It is a corporation that designs, develops and sells electronic products such as tablets, computers and phones. Founded by Ronald Wayne, Steve Jobs and Steve Wozniak in 1976, it is a multinational corporation with headquarters in Cupertino, California. Tim Cook has been CEO since Jobs’ passing in 2011.