The financial statements of P&G are presented in Appendix 5B or can be accessed at the book’s companion website, www.wiley.com/college/kieso.
Instructions
Refer to P&G’s financial statements and the accompanying notes to answer the following questions.
(a) What were P&G’s sales for 2009?
(b) What was the percentage of increase or decrease in P&G’s sales from 2008 to 2009? From 2007 to 2008? From 2005 to 2009?
(c) In its notes to the financial statements, what criteria does P&G use to recognize revenue?
(d) How does P&G account for trade promotions? Does the accounting conform to accrual accounting concepts? Explain.