In the CVS annual report in the Supplement to Chapter 1, refer to the balance sheet and
Question:
In the CVS annual report in the Supplement to Chapter 1, refer to the balance sheet and the Summary of Significant Accounting Policies in the notes to the financial statements.
1. Examine the accounts in the current assets, property and equipment, and current liabilities sections of CVS’s balance sheet. Which are most likely to have had year-end adjusting entries? Describe the nature of the adjusting entries. For more information about the property and equipment section, refer to the notes to the financial statements.
2. Where is depreciation (and amortization) expense disclosed in CVS’s financial statements?
3. CVS has a statement on the “Use of Estimates” in its Summary of Significant Accounting Policies. Read this statement and tell how important estimates are to the determination of depreciation expense. What assumptions do accountants make that allow these estimates to be made?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 All current assets except cash can be affected by adjusting entries Similarly longterm ...View the full answer
Financial and Managerial Accounting
ISBN: 978-1439037805
9th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
