Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 53

Refer to Apple 's financial statements in Appendix A to answer the following.
1. Identify and write down the revenue recognition principle as explained in the chapter.
2. Review Apple's footnotes (in Appendix A and/or from its 10-K on its website) to discover how it applies the revenue recognition principle and when it recognizes revenue. Report what you discover.
3. What is Apple's profit margin for fiscal years ended September 28, 2013, and September 29, 2012.
Fast Forward
4. Access Apple's annual report (10-K) for fiscal years ending after September 28, 2013, at its website ( Apple.com ) or the SEC's EDGAR database ( www.SEC.gov ). Assess and compare the September 28, 2013, fiscal year profit margin to any subsequent year's profit margin that you compute.
Reference: Apple 's financial statements in Appendix A