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Accounting Analysis of Google Incorporated

In: Business and Management

Submitted By abhi2609
Words 1683
Pages 7
Abhishek Chandra
Term Project
Principles of Accounting
Professor Valenti

Google
Incorporated

Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its various marketing programs embedded in its search engine.
The largest portion of Google’s revenue comes from advertising and marketing. To be more specific, Google provides third party entities with the means to display ads targeted to specific users depending on factors such as search criteria, online viewing content, and residency. The company uses a system called the cost-per-click basis, requiring the creator of the ad to pay Google when a consumer clicks on an advertisement. Google not only provides services for the common user, but also designs specific products for corporate settings, such as non-profit organizations, government, businesses and schools. Most of its online products are free to use and are supported by text ads that are displayed within the interface. This begs the question of whether Google has a sustainable business model if in the future people begin to ignore internet-based advertisements.
For my report, I used two different reports to financially analyze Google Incorporated, which were the 2012 10K form filed with the Securities and Exchange Commission and the Annual report which is posted on it’s website and sent to it’s investors. The 10K report is a document that contains a more detailed explanation of business activity. The 10K is generated annually and has the same financial statements as the annual report, but it is much more detailed and business oriented. Therefore, most of my analysis came from the 10K report. The main purpose of the 10K is to provide detailed...

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