Balance sheet vs income statement

a. Do you believe that this focus implies that the balance sheet is more important than the income statement? Explain.

b. How is balance sheet useful to investors? Discuss.

c. What is meant by the phrase “financial statements are articulated”?

d. Which measurements currently reported in balance sheets are consistent with the physical capital maintenance concept? Give examples.

e. Which measurements currently reported in balance sheets are not consistent with the physical capital maintenance concept? Give examples.

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