ACC220 Conceptual Framework

The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.

• Monetary Unit

• Periodicity

• Going Concern

• Economic Entity

Solectron Corporation, Inc. adjusts amounts in its financial statements for the effects of inflation

• Monetary Unit

• Periodicity

• Going Concern

• Economic Entity

Walgreen Co. reports current and noncurrent classifications in its balance sheet.

• Monetary Unit

• Periodicity

• Going Concern

• Economic Entity

The economic activities of General Electric and its subsidiaries are seperated for accounting and reporting purposes.

• Monetary Unit

• Periodicity

• Going Concern

• Economic Entity

Norfolk Southern Corporation reports revenue in its income statement when it is earned instead of when the cash is collected.

• Historical Cost

• Revenue Recognition

• Matching

• Full Disclosure

Yahoo, Inc. recognizes depreciation expense for a machine over the 2-year period during which that machine helps the company earn revenue.

• Revenue Recognition

• Matching

• Full Disclosure

• Historical Cost

Oracle Corporation reports ALL information about pending lawsuits in the notes to its financial statements.

• Revenue Recognition

• Matching

• Full Disclosure

• Historical Cost

Eastman Kodak Company reports land on its balance sheet at the amount paid to acquire it, even though the estimated fair market value is greater.

• Revenue Recognition

• Matching

• Full Disclosure

• Historical Cost

The characteristic that financial information has if it can be compared with the financial information of other companies because the companies all use the same accounting principles

• Comparability

• Verifiability

• Timeliness

• Understandability

A characteristic of financial information that assures that the information shows the economic reality of the transaction

• Understandability

• Timeliness

• Verifiability

• Comparability