The following excerpts were taken from the annual reports of a variety of companies: I. The companys

Question:

The following excerpts were taken from the annual reports of a variety of companies:

I. The company’s reporting period ends on the Saturday closest to January 31(The Limited).

2. The consolidated financial statements include the accounts of Federal Express and its wholly owned subsidiaries (Federal Express)

3. Inventories are valued primarily the lower of cost or market value (JCPenney).

4. Certain reclassifications have been made for prior yes to conform with this year’s presentation Wendy’s International)

5. Revenues from the distribution of motion pictures are recognized when motion pictures arc exhibited (Walt Disney).

6. In an ongoing in ligation, the Antitrust Division of the U.S. Department of Justice requested information from Microsoft concerning various issues. Management currently believes that resolving these matters will not have a material adverse impact on the company financial position or operations (Microsoft).

7. Flight equipment is depreciated on a straight-Line basis over a 20-year useful life (Delta Air Lines).

8. Intangible assets are carried on the balance sheet at cost (Merck).

9. Property and equipment arc recorded at cost Apple. Inc.)

10. Inflation rates even though moderate in maim pails of the world, continue to have an effect on worldwide economies but have had no effect on the company’s reported financial position and performance (Johnson & Johnson).

Match each of the ten assumptions, principles, and exceptions below with one of the ten excerpts

Assumptions Principles Exceptions

Economic entity Objectivity Materiality

Stable dollar Matching Conservatism

Fiscal period Revenue recognition

Going concern Consistency

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...