The following financial highlights were drawn from the 2012 annual reports of Exxon Mobil Corporation and Apple Inc.

Even so, as of February 28, 2013, Wall Street valued Exxon Mobil at $402.9 billion and Apple at $418.6 billion.
Divide the class into groups of four or five students.
Required
Have the members of each group reach a consensus response for each of the following tasks.
Each group should elect a spokesperson to represent the group.
Group Tasks
(1) Determine the amount of expenses incurred by each company.
(2) Comment on how the concept of conservatism applies to the information presented in this case.
(3) Speculate as to why investors would be willing to pay more for Apple than ExxonMobil.

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Exxon Apple Revenue Net income SA82.3 Billion $156.5 Bilion S 44.9 Billion 41.7 Bilion Cash and short-term investments S 38.1 Billion 29.1 Billion