Focus on Financials | Amazon.com, Inc (Learning Objective 6: Report cash on the balance sheet)…

Focus on Financials | Amazon.com, Inc

(Learning Objective 6: Report cash on the balance sheet) Refer to the Amazon.com, Inc., consolidated financial statements in Appendix A at the end of this book. The cash and cash equivalents section of the Consolidated Balance Sheet shows a balance of $8,084 as of December 31, 2012.

1. What are the general criteria for an asset to be classified as a “cash equivalent”?

2. Refer to Note 1—DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES. What types of assets does the company generally include in the category of “cash equivalents”?

3. Does the company include any more detailed description of “cash equivalents”? Where? Describe the categories.

4. Does Amazon.com, Inc. have any “restricted cash”? What is this? Why do you think these assets have to be separately disclosed? (Challenge)

 

 

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