4.1. a. What is the difference between the income statement and balance sheet in regard to timing? b. What is wrong with the following statement? The clinics cash balance for 2020 was $150,000, while its net income on December 31, 2020, was $50,000.

4.2. a. What is the accounting identity? b. What is the implication of the accounting identity for the numbers on a balance sheet? c. What does the accounting identity tell us about a businesss equity?

4.3. a. What are assets? b. What are the three major categories of assets?

4.4. a. What makes an asset a current asset? b. Provide some examples of current assets. c. What is net working capital, and what does it measure?

4.5. a. On the balance sheet, what is the difference between long-term investments and property and equipment?

b. What is the difference between gross fixed assets and net fixed assets?

c. How does depreciation expense on the income statement relate to accumulated depreciation on the balance sheet?