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

1. Apple uses accrual accounting to recognize revenue when earned and expenses when incurred.
2. The income statement of Apple includes key sections such as net sales, cost of sales, operating expenses, and net income.
3. Apple's balance sheet lists assets like cash equivalents and inventory, alongside liabilities including long-term debt.
4. Apple issues bonds to raise capital; these bonds are rated highly due to the company's financial stability.
5. 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?

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.