In the United States, a public company’s financial statements must be according to Generally Accepted Accounting Principles (GAAP). These principles are cost, revenue recognition, and matching principles. Examine the financial statement and notes of a public company. Write a paper between 5 and 7 pages (double-spaced) discussing the following:
- Introduction/Background Information.
- GAAP and description of the accounting principles: Cost, revenue recognition, and matching.
- Selected company’s application of GAAP in cost recording, revenue recognition, and matching of expenses and revenues.
- Description of recent accounting standard(s) and pronouncement(s) that affect the selected company’s financial statements.
- Description of assertions of internal controls in the notes to the financial statements.
You must use the FASB codification in your essay about the principles because it is the authoritative guidance for GAAP. You will find it useful to consult other credible sources through the library to learn more about your selected company and other information you may need. The project must be APA-formatted and include a title page and a reference page.
Company selected is JCPENNY
Examine penny’s company’s income statement, statement of cash flows, and notes to the financial statements. As we know, Net Income = Revenue -Expenses. What is the company’s net income relative to its revenue? In the statement of cash flows, what are the major sources and uses of cash? Does the company have a good cash position for the most recent period? Explain why you believe or not believe so