The financial statements of Green Mountain Coffee are presented in Appendix B, following the financial statements for Starbucks in Appendix A.

\section*{Instructions}

(a) Identify two accounts on Green Mountain's balance sheet that provide evidence that Green Mountain uses accrual accounting. In each case, identify the income statement account that would be affected by the adjustment process.

(b) Identify two accounts on Starbucks' balance sheet that provide evidence that Starbucks uses accrual accounting (different from the two you listed for Green Mountain). In each case, identify the income statement account that would be affected by the adjustment process.