Distinguish between an expense (expired cost) and an asset.
Distinguish between current and long-term assets.
Distinguish between current and long-term liabilities.
Review Apple's balance sheet and provide two examples of each of the above categories.
Comment on at least three differences between Apple's and Philips' balance sheets.
Does Apple or Philips have more debt?
Which of the two companies is the bigger one? Explain your reasoning.
The solution provides a detailed analysis for each area listed using the financial statements and related data from Apple and from Philips. This solution is written based on 25+ years of professional accounting experience. All questions are answered in detail with supporting calculations as needed.