Ch 4, Ques 4.1
The difference between the income statement and balance sheet in regards to timing is the following: * An income statement is a report that contains information in regards to an organizations’ assets and financing in order to obtain those assets that is collected over a certain period of time * A balance sheet is snapshot of the financials for that organization (with assets on the left and liabilities on the right side) for that particular date that was requested
Ch 4, Ques 4.5 a, b, c a) The difference between long term investments and property and equipment on the balance sheet are as follows: * Long term investments are reported on the balance sheet at a fair market value instead of the purchase price meaning that when the market fluctuates so will the value price associated with it * The property and equipment or fixed assets are initially listed on the balance sheet for their purchase price and then annually depreciated for normal wear and tear

b) The difference between gross fixed assets and net fixed assets are:

* Gross fixed assets are physical assets such as property, equipment, etc. that is calculated as the purchase price of what the organization has paid for them. They have a life of more than one year.

* Net fixed assets is also known as the book value which is the purchase price minus the depreciation of that physical asset

c) How does depreciation expense on the income statement relate to accumulated depreciation on the balance sheet? Depreciation expense on the income statement reduces the fixed asset and is reported as an expense whereas on the balance sheet it is used to see how much depreciation has accumulated from the fixed asset purchase until the ending date of the balance sheet. This makes them contra asset accounts. Ch 4, Ques 4.6 a, b, c, d a) What is the difference