Apple Inc Essay

1349 WordsJun 7, 20116 Pages
Apple Inc AIU Abstract Accounting is no doubt the universal language of business. The importance of accounting and accountancy cannot be over-emphasized. How do people expect business and financial environment to be free from financial trouble when a lot of people fail to appreciate the importance of accounting. For financial analyst it is necessary to know firstly GAAP analysis (generally accepted accounting principles).Where accounting standards ,rules and regulation are stated in accordance with the international accounting standard board. Obviously, we have numbers of accounting standards IAS and principles on the basis of this financial analyst enable to make decision. In a nut shell, when we have accounting rules standards and a defined guideline it will be very convenient for financial analyst to make decision. Apple Inc After taking a closer look at Apple Inc.'s financial reports I have come to the conclusion that the firm is currently in good financial standing. The analysis measured Apple's financial position across four different categories. The first category is a liquidity ratio. A liquidity ratio is used to test a firm's liquidity. I chose to calculate the current ratio. This ratio is calculated by dividing current assets by current liabilities. The current ratio reveals whether a company's short-term assets (cash, receivables, inventory, etc.) are readily available to pay off its short-term liabilities (notes payable, accrued expenses and taxes). When looking at Apple across a three year period from September of 2007-September of 2009, the firm showed a steadily increasing current ratio. This shows that Apple is increasing its current assets at a faster rate than their current liabilities. The second category of the financial analysis is the leverage ratio. A leverage ratio is used to calculate the financial leverage of a company along

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