Accounting Financial Accounting Microsoft Corporation Research Paper

Prepare a  research paper on 5 company accounting principles as described below and send by email to the instructor.  Title page and reference page do not count for prescribed number of pages.  I am looking for your assessment of the company’s use of the accounting principles.  Do at least a paragraph on each principle.  Did you find something interesting in this research?

The company will be Microsoft

           Go to the Company/Corporation web site for investors to financial information to the Annual Report or 10-K.  Look for Note 1 or 2 of Significant Accounting Policies or Practices.

Select 5 Accounting Principles to discuss; quote company’s statement and give your assessment in a short paragraph.

1. Fair Value Principle Measurements – Global or Historical Cost Principle – USA
2. Intangibles- Goodwill
3. Revenue Recognition – Long Term contracts: at sale or during progress of contract with progress billing
4. Financial Services Revenue
5. Insurance Revenue
6. Research and Development
7. Inventories – FIFO or LIFO or Weighted Average or Specific Identification or Lower-of-Cost-or Net Realizable Value

• Tracks inventory under perpetual or Periodic basis

1. Property Plant & Equipment – Straight Line, 150% declining or sum of units

• Write off with depreciation or amortization or depletion

1. Warranties – on products
2. Operating or Capital Leases
3. Recently Adopted Accounting Guidance or Changes – examples
4. Discusses General Accepted Accounting Principles

Lastly, what is the price of 100 shares of the company?  Using only your research of accounting principles and assuming that you had the investment capital to cover the shares price, would you invest or not and WHY.

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