Accrual versus cash basis of accounting PepsiCo, Inc. (PEP) is a food and beverage company with a variety of brands, including Frito-Lay, Gatorade, Pepsi-Cola, and Tropicana. O recent financial statements, Pepsi reported net income of $7,679 million and $2,710 million of depreciation expense. If Pepsi had used the cash basis of accounting, its net income would be approximately $11,616 million. Why would Pepsi's net income be higher if it had used the cash basis? Because depreciation expense a cash payment, it is net income of $11,616 million. As a result, Pepsi's accrual net income of $7,679 million is net income of $11,616 million. A majority of this difference of $ million. million in arriving at Pepsi's estimated cash-bas its estimated cash-basis depreciation expense of $2,710

Accrual versus cash basis of accounting PepsiCo, Inc. (PEP) is a food and beverage company with a variety of brands, including Frito-Lay, Gatorade, Pepsi-Cola, and Tropicana. O recent financial statements, Pepsi reported net income of $7,679 million and $2,710 million of depreciation expense. If Pepsi had used the cash basis of accounting, its net income would be approximately $11,616 million. Why would Pepsi's net income be higher if it had used the cash basis? Because depreciation expense a cash payment, it is net income of $11,616 million. As a result, Pepsi's accrual net income of $7,679 million is net income of $11,616 million. A majority of this difference of $ million. million in arriving at Pepsi's estimated cash-bas its estimated cash-basis depreciation expense of $2,710

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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