Read the situation about Apple and answer the “Question and Analysis” part Revenue Recognition: Apple Inc.Case StudyThis gives every sale transaction a correctmethod of accounting. For example, everyiPhones sold comes with a free phonewarranty and free access to AppleTV+, AppleArcade, and Apple Music ranging from 3months to 1 year. Telecommunicationscompanies also make transactions morecomplex through inclusion of postpaid plans.A Compilation of Accounting Case StudiesSmith, Madelyn, "A Compilation of Accounting Case Studies" (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,202222QuipperRevenue Recognition: Apple Inc.aCase StudyThis only signifies that knowing thenature of a business and observingproper accounting standards is critical tosimplify financial information, give easeto customers, and provide confidence toinvestors, which later contributes to thesuccess of a company.QuipperA Compilation of Accounting Case StudiesSmith, Madelyn, "A Compilation of Accounting Case Studies" (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,Questions for reflection nd analysis2022Case Study231. Why is proper recognition of revenues important forcompanies like Apple?2. How does ASC 606 impact the accounting practicesof companies like Apple?3. What role do proper accounting standards play insimplifying financial information for companies likeApple? Revenue Recognition: Apple Inc.Case StudyApple Inc. is a multinational technology companybased in California, USA. It is one of the mostsuccessful startups in US history and is currentlyone of the largest IT companies in the world. Thecompany is widely known for its branded productssuch as the iPhone, iPad, and personal computers.But aside from being a consumer electronicscompany, it also provides software and digitalservices to Apple ecosystem users.QuipperA Compilation of Accounting Case StudiesSmith, Madelyn, "A Compilation of Accounting Case Studies" (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,202219Revenue Recognition: Apple Inc.Case StudySince Apple sells a variety of services and goods, properrecognition of revenues is must. This is where ASC 606is given much importance, since it lays out howcompanies should recognize revenue. In addition, ASC606 is an American standard where the IFRS 15 (RevenueRecognition) is an international counterpart widely usedin other countries, such as the Philippines. However,since Apple is based in the United States, it is prompt forthem to follow ASC 606.QuipperA Compilation of Accounting Case StudiesSmith, Madelyn, "A Compilation of Accounting Case Studies" (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,2022Revenue Recognition: Apple Inc.Case StudyAccording to ASC 606, to recognize revenue acompany must: identify the contract with thecustomer, identify the performance obligations,determine the transaction price, allocate the priceto the obligations, and once the performanceobligation is satisfied, the company can recognizerevenue. With this, it is important for Apple toproperly follow the guidelines set forth by ASC 606to account their transactions in a sound manner.QuipperA Compilation of Accounting Case StudiesSmith, Madelyn, "A Compilation of Accounting Case Studies" (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,202221

Question

Read the situation about Apple and answer the “Question and Analysis” part Revenue Recognition: Apple Inc.Case StudyThis gives every sale transaction a correctmethod of accounting. For example, everyiPhones sold comes with a free phonewarranty and free access to AppleTV+, AppleArcade, and Apple Music ranging from 3months to 1 year. Telecommunicationscompanies also make transactions morecomplex through inclusion of postpaid plans.A Compilation of Accounting Case StudiesSmith, Madelyn, &#34;A Compilation of Accounting Case Studies&#34; (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,202222QuipperRevenue Recognition: Apple Inc.aCase StudyThis only signifies that knowing thenature of a business and observingproper accounting standards is critical tosimplify financial information, give easeto customers, and provide confidence toinvestors, which later contributes to thesuccess of a company.QuipperA Compilation of Accounting Case StudiesSmith, Madelyn, &#34;A Compilation of Accounting Case Studies&#34; (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,Questions for reflection nd analysis2022Case Study231. Why is proper recognition of revenues important forcompanies like Apple?2. How does ASC 606 impact the accounting practicesof companies like Apple?3. What role do proper accounting standards play insimplifying financial information for companies likeApple? Revenue Recognition: Apple Inc.Case StudyApple Inc. is a multinational technology companybased in California, USA. It is one of the mostsuccessful startups in US history and is currentlyone of the largest IT companies in the world. Thecompany is widely known for its branded productssuch as the iPhone, iPad, and personal computers.But aside from being a consumer electronicscompany, it also provides software and digitalservices to Apple ecosystem users.QuipperA Compilation of Accounting Case StudiesSmith, Madelyn, &#34;A Compilation of Accounting Case Studies&#34; (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,202219Revenue Recognition: Apple Inc.Case StudySince Apple sells a variety of services and goods, properrecognition of revenues is must. This is where ASC 606is given much importance, since it lays out howcompanies should recognize revenue. In addition, ASC606 is an American standard where the IFRS 15 (RevenueRecognition) is an international counterpart widely usedin other countries, such as the Philippines. However,since Apple is based in the United States, it is prompt forthem to follow ASC 606.QuipperA Compilation of Accounting Case StudiesSmith, Madelyn, &#34;A Compilation of Accounting Case Studies&#34; (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,2022Revenue Recognition: Apple Inc.Case StudyAccording to ASC 606, to recognize revenue acompany must: identify the contract with thecustomer, identify the performance obligations,determine the transaction price, allocate the priceto the obligations, and once the performanceobligation is satisfied, the company can recognizerevenue. With this, it is important for Apple toproperly follow the guidelines set forth by ASC 606to account their transactions in a sound manner.QuipperA Compilation of Accounting Case StudiesSmith, Madelyn, &#34;A Compilation of Accounting Case Studies&#34; (2019). University of Mississippi.Honors Theses. 1081. https://egrove.olemiss.edu/hon_thesis/1081. Last Accessed on April 20,202221

Accepted Answer

In the ever-evolving world of business, particularly for a multinational giant like Apple, ensuring…