Accounting question

1. AI Tool Selection: – Choose an AI tool that you’re comfortable with or curious about. This tool will assist you in analyzing financial statements.

2. Answering the Questions: – Utilize the list of questions provided to guide your exploration and analysis. As you work through each question, remember to interact with the AI tool and note down its responses.

3. Submission Requirements: – AI Tool Identification: Clearly state the name of the AI tool you used for this assignment. – Evidence of Interaction: Include screenshots that show both your prompts (the instructions or queries you provided to the AI) and the AI’s subsequent responses. This will give a clear picture of your interaction with the tool. – Comparative Analysis: – At the end of this document, you’ll find a set of correct answers. Compare these with the responses you received from the AI. – In a well-structured paragraph, discuss whether the AI’s answers match the provided answers. If there are discrepancies, try to reason out why this might have occurred. Ensure your response flows logically and is easy to follow

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Accounting 331 Spring 24 Research Assignment
General Description
In this assignment, you’ll be harnessing the power of Artificial Intelligence (AI) for financial
statement analysis. Follow the guidelines below to ensure you meet all the requirements:
1. AI Tool Selection:
– Choose an AI tool that you’re comfortable with or curious about. This tool will assist you in
analyzing financial statements.
2. Answering the Questions:
– Utilize the list of questions provided to guide your exploration and analysis. As you work
through each question, remember to interact with the AI tool and note down its responses.
3. Submission Requirements:
– AI Tool Identification: Clearly state the name of the AI tool you used for this assignment.
– Evidence of Interaction: Include screenshots that show both your prompts (the instructions or
queries you provided to the AI) and the AI’s subsequent responses. This will give a clear picture
of your interaction with the tool.
– Comparative Analysis:
– At the end of this document, you’ll find a set of correct answers. Compare these with the
responses you received from the AI.
– In a well-structured paragraph, discuss whether the AI’s answers match the provided answers. If
there are discrepancies, try to reason out why this might have occurred. Ensure your response
flows logically and is easy to follow.
Remember, the objective here isn’t just to get the right answers, but to understand the process and
capabilities of AI in the context of financial statement analysis. Best of luck!
Instructions:
Refer to the financial statements of Target posted on Blackboard. All dollar amounts are in
millions.
Required:
Skim the annual report. Look at the income statement, balance sheet, and cash flow statement
closely and attempt to infer what kinds of information they report. Then, answer the following
questions based on the report using the AI tool of your choice. Note: The correct answers are
provided on the last page of this handout.
1. What best describes the types of products Target sells?
2. On what date does Target’s most recent reporting year end?
3. For how many years does it present complete balance sheets, income statements, and
cash flow statements?
4. Are its financial statements audited by independent CPAs? How do you know?
5. Did its total assets increase or decrease over the last year?
6. What was the value of inventory the company had as of January 30, 2021, in millions
(accountants would call this the ending balance)?
7. Write out the basic accounting (balance sheet) equation and provide the values in millions
of dollars reported by the company as of January 30, 2021.
How to utilize AI to answer questions based on the annual report:
1. Preparation:
First, obtain the digital copy of Target’s annual report. The shorter, cut-down
educationalpurpose version is posted on Blackboard. If you wish, the full original version may
be found (1) in the SEC Edgar database and (2) in PDF format on the company’s investor
relations webpage.
Ensure you have an AI tool or platform available for assistance. Examples include
OpenAI’s ChatGPT or other AI-based search and text analysis tools like Google Bard, Microsoft
Bing AI, or any other you prefer.
2. Uploading the Report (if necessary):
– Some AI platforms might require you to upload the document. Follow the specific guidelines
provided by the tool/platform to do so.
3. Querying the AI:
– Break down your question into specific, searchable terms. For instance, instead of asking
“What best describes the types of products Target sells?”, you might input “Target product types”
or “Target product description.”
4. Understanding Financial Statements:
– For questions related to the income statement, balance sheet, or cash flow statement, you
might ask the AI for a brief overview or summary of these financial statements. This will give
you a foundation to understand the information they contain.
5. Specific Searches:
– For questions that require specific data points, like the value of inventory on January 30,
2021, query the AI with exact terms like “Target inventory value January 30, 2021.”
6. Verifying Auditing Information:
– To determine if the financial statements are audited by independent CPAs, input a search term
like “Target auditor’s report” or “Is Target’s financial statement audited?”
7. Interpreting Results:
– The AI will return answers based on its analysis of the document. Make sure to crossreference
the AI’s answer with the actual content in the annual report for accuracy.
8. Basic Accounting Equation:
– If unsure about the accounting equation or related terms, don’t hesitate to ask the AI for
clarifications. For example, “What is the basic accounting equation?”
9. Seeking Additional Information:
– Beyond the questions in the assignment, you can utilize the AI to extract more insights or data
points from the report that might be useful for a deeper understanding or further research.
10. Final Check:
– Once you’ve gathered answers using the AI, revisit the original questions and the annual
report to ensure the completeness and accuracy of your answers.
Note: AI tools are incredibly helpful, but they are not infallible. Always double-check the
information provided and ensure it aligns with the context given in the actual report.
Correct Answers (for comparison purposes ):
1. General merchandise and food
2. January 30, 2021
3. 2 balance sheets, 3 income statements, 3 cash flow statements
4. Yes, as indicated by the report of the Independent Registered Public AccounIng Firm
5. Increase
6. $10,653
7. $51,248 = $36,808 + $14,440