This Apple Computer Accounting Not So Boring

Here's how Apple pays you money in dividends. What's not to love about this accounting entry from retained earnings?

For those of you who think accounting is boring and complicated, well, I suspect you are in large company with that opinion.  And I’m not going to try to change your opinion, even though I personally think aspects of accounting are interesting.

But I do want to show you some accounting that is quite interesting.  And tell you why.

And I think you’ll agree with me when I’m done.  Now that’s some brave talk, don’t you agree.

In any event, just look at the accounting entries in the illustration above.  Can you guess what they are about?

If you own Apple Stock, or want to own Apple stock, they are incredibly interesting.

Because these are the accounting entries (known as journal entries) that someone in the accounting department just made recently.  And here is what they say – in plain English — not accounting jargon.

“The board of Apple looked at the big pile of billions of dollars they have laying around from all their profits and decided to give about 3 billion (yes, that’s with a B) to the people that have owned Apple stock the past three months.”

Yup – that’s what all of that says.

And Apple has some much cash laying around, and such good prospects of making oodles (not an accounting term) of money in the next three months, that they will probably do the same thing all over again.

Now, who says accounting isn’t interesting.  Especially if you own Apple stock and are about to get a nice dividend check in the mail.

By the way, Apple seems to be priced right for buying in my opinion – so I put my toe in the water and bought a few shares.

To you health and prosperity – John Roberts

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