1. The balance sheet consists of assets and liabilities and equity. With a focus on liabilities, discuss the connectedness of these three components.

2. Discuss the components needed to determine the present value of a noncurrent liability.

3. Discuss the relationship between the income statement and the shareholders' equity section of the balance sheet.

4. Discuss the purpose of other comprehensive income and accumulated other comprehensive income.

5. Compare and contrast book value per share and market capitalization.

6. Evaluate the expected profitability and growth of a company with a price-to-book ratio of 1.4.

7. Which would you expect to find more useful financial statements for evaluating management performance: financial statements based on fair value or historical cost? Why?