Introducing Financial Accounting - CCSN Computer Graphics Program

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BTN 1-9 Nokia (www.Nokia.com) is a leading manufacturer of mobile devices and services, and it
competes to some extent with both Research In Motion and Apple. Key financial figures for Nokia
follow.
Required
Key Figure* Euro (EUR) in Millions
Average assets . . . . . . . . . . . . . . . . . . 37,660
Net income . . . . . . . . . . . . . . . . . . . . 260
Revenue . . . . . . . . . . . . . . . . . . . . . . . 40,984
Return on assets . . . . . . . . . . . . . . . . 0.7%
* Figures prepared in accordance with International Financial Reporting Standards.
1. Identify any concerns you have in comparing Nokia’s income and revenue figures to those of Research
In Motion and Apple (in BTN 1-2) for purposes of making business decisions.
2. Identify any concerns you have in comparing Nokia’s return on assets ratio to those of Research In
Motion and Apple (computed for BTN 1-2) for purposes of making business decisions.
ANSWERS TO MULTIPLE CHOICE QUIZ
1. c; $450,000 is the actual cost incurred.
2. b; revenue is recorded when earned.
3. d;
Assets 5 Liabilities 1 Equity
1$100,000 5 135,000 1 ?
Change in equity 5 $100,000 2 $35,000 5 $65,000
Chapter 1 Introducing Financial Accounting 47
4. a
5. a
GLOBAL
DECISION
A1 A2 A3
RIM
Apple