Posted: February 4th, 2023
Using the SEC 10-K for APPLE inc. answer the questions below:
https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019322000108/aapl-20220924.htm
SOLUTION
The value of treasury stock does not increase or decrease, it remains the same as the company has repurchased its own shares and holds them in its treasury. The normal balance for treasury stock is a debit balance, meaning it reduces the value of stockholders’ equity on the balance sheet.
The value of other comprehensive net income (or net loss), accumulated deficit, and retained earnings can vary. These values are subject to change based on the financial performance of the company, changes in accounting standards, and other factors. Other comprehensive net income (or net loss) is the portion of a company’s net income (or loss) that is not included in its current earnings, and is reported as a separate item in the stockholders’ equity section of the balance sheet. Accumulated deficit is the cumulative amount of net losses that a company has incurred over its history, and it is also reported in the stockholders’ equity section of the balance sheet. Retained earnings are the portion of a company’s net income that is not distributed as dividends and is instead reinvested in the company. The value of these items can change from period to period as a result of changes in the company’s financial performance, as well as changes in accounting standards.
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