The financial statements of Apple Inc. are presented in Appendix A at the end of this textbook. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

Instructions

(a) Using the consolidated financial statements and related information, identify items that may result in adjusting entries for prepayments.

(b) Using the consolidated financial statements and related information, identify items that may result in adjusting entries for accruals.

(c) What has been the trend since 2011 for net income?