Financial Reporting Problem, Part I

ACC/290

University of Phoenix

Financial Reporting Problem, Part I

The company's annual report is important because it gives the shareholders a clear picture and understanding about how the company is doing financially. The annual reports provide thorough information on very significant section of the accounts, such as the balance sheet, the income statement, and the cash flow statement. The information presented in the annual report would also be essential to potential investor, employee, and any other people that may have interest in financial aspect of the business.

The company's total assets at the end of 2009 were 39,848,000 (PepsiCo, n.d.). However, in 2010 its most recent annual report shows an increase to the previous annual reporting...