MBA FBX5010 Assessment1 1.docx MBA-FBX 5010 URBAN OUTFITTERS, INC. Accounting Polici

MBA FBX5010   Assessment1 1.docx  MBA-FBX 5010   URBAN OUTFITTERS, INC.  Accounting Policies Training Manual  MBA-FBX 5010 Accounting Methods for  Leaders  Manual Objectives:  This manual will:  ï‚·Compare how two accounting methods differ in their effects on the financial statements while providing examples and details clarifying the comparisons (i.e. capitalizing or expensing costs)  ï‚·Clearly explain the accounting method™s effect on specific financial statements  ï‚·    Explain how advertising and store opening costs are captured on Urban  Outfitters, INC. financial statements  ï‚·Analyze the importance of Notes to financial statements in interpreting financial statements  Financial Statements  œAny  corporation  whose stock is publicly traded  is subject to reporting requirements by the Securities and Exchange Commission  (SEC) (Averkamp,  2020,  p.1).  Large   companies,   such  as   Urban  Outfitters,   INC,   generate quarterly and/or yearly financial statements that are published by the SEC. These  financial statements include:  Income  statement (also  known as profit and loss  statement), Statement of  comprehensive  income,  Balance  sheet, Statement of  Cash Flows, and Statement of  stockholder™s  equity (Averkamp,  2020). To ensure that these statements are credible, easy to understand, and comparable  to other entities,  companies  follow a set of  common rules when developing  these statements. Those  set of  rules are  known as  generally accepted accounting principles or  GAAP (Avercamp