Access the latest annual report for Starbucks Corporation by clicking on the Investor Relations and Annual Reports links at www.starbucks.com.
Required
Review the first note to the financial statements and answer the following questions.
a. When does Starbucks recognize revenue from stored value cards? Where does it report out- standing customer balances? Is this an example of a deferred or accrued revenue?
b. When does Starbucks recognize retail revenues?
c. When does Starbucks recognize revenues from product sales such as coffee, tea, and related products?
d. Does Starbucks recognize all advertising costs as they are incurred? If not, does it treat those advertising costs as a deferred or accrued expense?