$1.($LO$1)$ What are the major limitations of the balance sheet as a source of information?

$2.($LO$4)$ Should available$-$for$-$sale securities always be reported as a current asset? Explain.

$3.($LO$1)$ Kathleen Battle says, $$Retained earnings should be reported as an asset, since it is earnings which are reinvested in the business.$$ How would you respond to Battle?

$4.($LO$3)$ Differentiate between operating activities, investing activities, and financing activities.