Chapter 4 Questions1.Part A: What is the difference between the income statement and balance sheet in regards to timing?
Part B: What is wrong with this statement: "The clinic's cash balance for 2011 was $150,000, while its netincome on December 31, 2011, was $50,000."
2.Part A: What is the accounting identity?
Part B: What is the implication of the accounting identity for the numbers on a balance sheet?
Part C: What does the accounting identity tell us about a business's equity?