Problem 1: Distinguish between an expense (expired cost) and an asset.
Problem 2: Distinguish between current and long-term assets.
Problem 3: Distinguish between current and long-term liabilities.
Problem 4: Review Apple's balance sheet and provide two examples of each of the above categories.
Problem 5: Discuss retained earnings and how income or loss and dividends affect this account. Review Apple's retained earnings account and explain how it changes between the two past years.
Problem 6: Comment on at least three differences between Apple's and Philips' balance sheets.
Problem 7: Does Apple or Philips have more debt?
Problem 8: Which of the two companies is the bigger one? Explain your reasoning.