A company must include a summary of its accounting policies in the notes to its financial statements. The Coca-Cola Company includes this summary as the first of its notes to the consolidated financial statements shown in Appendix A.

Required
1. Explain what is required to be disclosed about the accounting policies of a company.
2. Review the Coca-Cola Company’s note on its accounting policies and answer the following questions:
a. When does the company recognize revenue?
b. What items are classified as cash equivalents?
c. How are inventories valued, and generally what inventory costing method(s) is used?
d. How are property, plant, and equipment stated, and what depreciation method is used?
e. How are trademarks and other intangible assets amortized?
f. How does the company account for production costs of print, radio, television, and other advertisements? What was the amount of advertising and production costs included in prepaid expenses and other assets and noncurrent other assets as of December 31, 2004?