Amazon Financial

In: Business and Management

Submitted By danieldanand
Words 1270
Pages 6
Amazon.com Financial Reporting
ACC/290
April 4, 2012

Amazon.com Financial Reporting Part Two Amazon.com (Amazon) has a demonstrated a history of consistent behavior since their beginning in 1995, with big visions, long-term strategies, dedication to streamlining, prolific innovations, strategic investments, and an obsession over the customer. Starting a company with zero dollars in 1995, and capturing more than $6 billion in media/book sales in 2010, Amazon has taken the lion’s share of the ecommerce market (Treanor, 2010). By analyzing Amazon’s assets and liabilities, we seek to gain a better understanding of the structure of their business and the flow of their cash projection. A good corporate reputation confirms the high level of trust in a company. It can make a strong relation with a number of stakeholders either emotional or
Intellectual and beside it can act as a source of authority and credibility for the company (Heydari, Teimouri, Jamehshooran, 2011).
For reporting purposes the assets of a company should be grouped with similar assets to keep the information clear and easy to follow. According to Kimmel, Weygandt, & Kieso, (2009) “a classified balance sheet groups together similar assets and similar liabilities” (p. 48). The order in which the assets are listed is called marshaling. There are three different ways in which a balance sheet may be marshaled; the order of liquidity or reliability, order of permanence, and the mixed order of arrangement. The order of liquidity or reliability, assets is listed in order of how they can be converted into cash. With the order of permanence, assets are listed according to how permanent they are. The mixed order of arrangement is a combination of order of liquidity or reliability and the order of permanence. With the mixed order, assets are listed according to reliability and liabilities are…...

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