Your friend is the owner of a small but successful business which provides web design services. He comments that he only cares about the bottom line - the line on the income statement that shows the net income or net loss for the period. He also never bothers to read the balance sheet.

1. What type of accounts are reported on the income statement? Give one example of each.
2. What type of accounts are reported on the balance sheet? Give one example of each.
3. Is the balance sheet superfluous, or is there valuable information reported on it? Explain your answer thoroughly.
4. Comment substantively on the posts of at least two of your classmates.