The financial statements of Apple Inc. are presented in Appendix A. Instructions for accessing and using the

Question:

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

Apple’s financial statements contain the following selected accounts, stated in millions of dollars.

Accounts Payable Cash and Cash Equivalents

Accounts Receivable Research and Development Expense

Property, Plant, and Equipment Inventories

Instructions

(a) Answer the following questions.

(1) What is the increase and decrease side for each account?

(2) What is the normal balance for each account?

(b) Identify the probable other account in the transaction and the effect on that account when:

(1) Accounts Receivable is decreased.

(2) Accounts Payable is decreased.

(3) Inventories are increased.

(1) Research and Development Expense is increased.

(2) Property, Plant, and Equipment are increased.

Financial Statements
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Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...