While related to balance sheet and income statement of

While this
week reading, I have learned different things related to balance sheet and
income statement of the company. I learned from this reading about why the
managers of the company should be capable to read the financial statement of
the companies. In the financial statement of Amazon for period 2014-2016, when
I reached to the revenue recognition practice of the company I felt that it
recognized the sale as soon as the order receives instead of the point when the
sale is actually made, i.e. when the product is delivered to the customer. This
seems weird to me as if anything happens during the period the order is
received and it delivered how the company will record that event. Further I
have the question related to sale return treatment by Amazon as whether it
record the return when it received and if so then it means the company is
recording the sale and respective sale return (if any) in different period that
will violate the matching rule in accounting that required the related expense
and income should be recorded in same period. And what about warranties that it
offers on different products & how those claims are treated in financial
term (Berman, et al., 2013).

Amazon
mentioned a long list of services it provides to its customers but how these
services and their related costs are recorded in financial statements
especially in case of credit-card services.

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Further
during the reading of financial statements and the history of the company the
point that impressed me most is the adoption of acquisition practice by the
company to expand its operations. Amazon not just made numerous acquisitions
but also integrate them successfully to their existing operations that
represents an impressive management approach to not to just their customers but
also to the internal resources that serves those consumers.