Apple, Inc.
Definition
Apple, Inc. is a multinational technology company known for its innovative products such as the iPhone, MacBook, and Apple Watch. It is also one of the largest publicly traded companies by market capitalization.
5 Must Know Facts For Your Next Test
- Apple uses accrual accounting to recognize revenue when earned and expenses when incurred.
- The income statement of Apple includes key sections such as net sales, cost of sales, operating expenses, and net income.
- Apple's balance sheet lists assets like cash equivalents and inventory, alongside liabilities including long-term debt.
- Apple issues bonds to raise capital; these bonds are rated highly due to the company's financial stability.
- The statement of cash flows for Apple details cash from operating activities, investing activities, and financing activities.
Review Questions
- How does Apple recognize revenue in its financial statements?
- What are some key components listed on Apple's balance sheet?
- Why is Apple's bond rating typically high?
"Apple, Inc." appears in:
Subjects (1)
Study guides (10)
- Principles of Finance - 4.4 When Should a Company Capitalize or Expense an Item?
- Principles of Finance - 5.1 The Income Statement
- Principles of Finance - 5.2 The Balance Sheet
- Principles of Finance - 5.3 The Relationship between the Balance Sheet and the Income Statement
- Principles of Finance - 5.4 The Statement of Owner’s Equity
- Principles of Finance - 5.5 The Statement of Cash Flows
- Principles of Finance - 5.7 Common-Size Statements
- Principles of Finance - 5.8 Reporting Financial Activity
- Principles of Finance - 10.1 Characteristics of Bonds
- Principles of Finance - 15.1 Risk and Return to an Individual Asset
Related terms
Accrual Accounting: A method where revenue and expenses are recorded when they are earned or incurred, not necessarily when cash changes hands.
Balance Sheet: A financial statement that provides a snapshot of a company's financial position at a specific point in time.
Bonds: Debt securities issued by entities such as corporations or governments to raise capital from investors.
