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Toys'R'Us Annual Report Activities
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SMARTHINKING
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Needles Accounting Resource Center
Principles of Financial Accounting
, 2002 Edition
Belverd E. Needles, Jr., DePaul University
Marian Powers, Northwestern University
Susan Crosson, Santa Fe Community College
Toys'R'Us Annual Report Activities
Chapter 8
Internal Control Considerations
Refer to the Toys "R" Us Annual Report to answer the following questions:
1. How many stores did Toys "R" Us operate in the United States and abroad in the most recent year?
2. The typical store is a large building that contains a showroom where customers wheel grocery carts down aisles to select toys and other products for purchase, a warehouse where larger items may be picked up after purchase, a bank of cash registers, and a service desk where returns and other unusual transactions can be authorized. Identify the main activities or transactions for which Toys "R" Us management would need to establish internal controls in each new store.
3. Discuss the objectives of internal controls in each of the above cases.
Either print out your answers for submission or email them to your instructor.
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