Discuss how amazon accounts

Reference no: EM133416841

Question: Before beginning work on this discussion, read Amazon.com's most recent annual report from www.amazon.com Links to an external site.. In this discussion, we will determine how sales affect Amazon.com's Income Statement. After opening its virtual doors on the World Wide Web in July 1995, Amazon.com seeks to become Earth's customer-centric company. In each segment, Amazon.com serves its primary customer sets: consumers, sellers, developers, enterprises, and content creators (Amazon.com, 2016 Annual Report).

For your initial post, a minimum of 200 words is required for your response-[Note: citations and direct quotations do not count towards the minimum].

Go to www.amazon.com Links to an external site., select Annual Reports, Proxies, and Shareholders Letters, and open Amazon's most recent annual report.
Read the income statement, which Amazon.com names as the "Consolidated Statement of Operations," and in "Note 1-Description of Business and Accounting Policies," under Notes to Consolidated Financial Statements, read the subsections titled "Revenues" and "Cost of Sales."
Then examine Amazon.com's income statement by addressing the following:
- Estimate the percentage of Amazon's Sales as Net Income (Loss).
- Estimate the percentage of Amazon's Sales going to pay for the costs of the goods being sold.
- Summarize the specific criteria before Amazon recognizes a sale as completed and record the related revenue.
- Discuss how Amazon accounts for (reports on its income statement) the shipping costs it incurs to ship goods to its customers.

Reference no: EM133416841

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