ppt1 - Accr ued Revenue & Expense Example A ccr...

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Staples, I nc. 1.At fiscal year end January 31, 2009, Staples customers had purchased goods on credit totaling $1,864,756,000. Cash will be collected (realized) in next accounting period. Asset Source Transaction Financial Statement I mpact Balance Sheet Accounts receivable + $1,864,756,000 (increases total assets). Retained earnings + $1,864,756,000 (increases total equity for revenue earned). I ncome Statement Sales + $1,864,756,000. Both criteria of the revenue recognition principle are met so revenue is earned. Net income is increased by the same amount. Statement of Cash Flows No impact. Cash inflows will occur after revenue earned. Staples, I nc. 1.During fiscal year end January 31, 2009, Staples owed creditors $1,179,081,000 for accrued expenses and other current liabilities. Claims Exchange Transaction Financial Statement I mpact Balance Sheet Accrued expenses and other current liabilities + $1,179,081,000 (increases
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ppt1 - Accr ued Revenue & Expense Example A ccr...

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