Question

1. In one sentence describe Target’s business. (1 point)
2. Who is Target’s Auditor? (1 point)
3. What opinion do Target’s auditors express on the financial statements? (1 point)
4. Which footnote provides Target’s summary of accounting policies?   (1 point)
5. When does Target’s fiscal year-end? (1 point)
6. Which sales revenue stream was the largest in 2018? (1 point)
7. Which sales revenue stream had the largest growth between 2017 to 2018? (1 point)
8. What inventory costing method (discussed in class) does Target use for recording inventory? (1 point)
9. In one sentence, describe the accounting policy Target uses for when to record contingencies. (1 point)
10. Which note number addresses treasury stock or repurchase of stock? (1 point)
11. Who does Target have an operating lease agreement with? (1 point)
12. What accounting treatment does Target apply to advertising costs? Please also include what accounting principle supports this? (2 points)
13. How many common stock shares are authorized and outstanding at the balance sheet date? (2 points)
14. What is the par value of Target stock? (1 point)
15. What stock exchange does Target trade on? (1 point)
16. List 5 Risk Factors that are applicable to Target. (5 points)
17. How many Target stores does the state of Indiana have? (1 point)
18. What is the Target trading symbol? (1 point)
19. Name 2 Key Accounting Estimates and explain each in no more than two sentences. (4 points)
20. What are the names of the two opinions given by the outside auditors? (2 points)

Answer 1

2 Key Accounting Estimates

It measures the effects of past transactions of business or events, or the present status of an asset or liability in historical financial statement.

1) revenues from contracts accounted for by the percentage-of-completion method

As per the standards revenue should be calculated only when it is expected to be realised in future. Percentage of completion is accounting estimate .

2) pension and warranty expenses

It is calculated with the help of defined standards for uniformity.