Group Tasks (1) Determine the amount of expenses incurred by each company (2) Sp

Question

Group Tasks (1) Determine the amount of expenses incurred by each company (2) Speculate as to why investors would be willing to pay more for Apple than ExxonMobil. ATC 2-3 Research Assignment Identifying accruals and deferrals at Netflix This chapter defined and discussed accrual and deferral transactions. Complete the requirements be low using the most recent financial statements available on the Internet for Netflix, Inc. Obtain the statements by following the steps below. (Be aware that the formatting of the company's website have changed since these instructions were written.) may 1. Go to www.netflix.com. Click on "Investor Relations," which is at the bottom of the page in very small print. 3. Click on the "Annual Reports and Proxies" link at the left side of the page. 4. Click on the "20xx Annual Report." Use the PDF version of the annual report. 5. Find the company's balance 2. sheet and complete the requirements below. In recent years this hown toward the end of the Form 10-K section of the company's annual report, on page 38. The "Index" near the beginning of the report can help you locate the financial statements Required a. Make a list of all the accounts on the balance sheet that you believe are accrual-type accounts. b. Make a list of all the accounts on the balance sheet that you believe are deferral-type accounts

Explanation / Answer

Answer a. Accrual type of accounts in the balance sheet of Netflix based on 2017 annual report are follows:-

1) Accrued expenses

i) Accrued unpaid interest ( liability)

Answer b. Deferral type of accounts in the balance sheet of Netflix based on 2017 annual report are as follows

1) Differred revenue:- ( liabilities)

i) Billed membership fee which have not been recognized

ii) Gifts

iii) Other membership fee not redeemed

2) Differred expenses ( assets)

i) Stock based compensation

ii) Depreciation and amortization

iii) Federal and California tax R&D credits

iv) Federal foreign tax credits

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