Dear Kind Sirs:

We recently have a serious debate in our company, while reviewing company past performance. The company is started in Jan 2005 and we are in the conference room live.

John is comparing:
1) Income Statement Q1 and Q2 of 2005 and Q1 and Q2 of 2006 (for apple-to-apple comparison)
2) Balance Sheet Q2 of 2005 and Balance Sheet Q2 of 2006

Jack screams whoa wait a minute, it is not fair to compare Balance Sheet like that because Balance Sheet is a snapshot of the financial position at any given time. So, if we want to compare, compare Balance Sheet Q1 of 2006 to Q2 of 2006.

John yells you wait a minute dude, we been doing this for years.

Meanwhile, I am sitting back and waiting (for your answer/help) to scream back at them, and I am itching just to yell something. So, please help.

Thanks for your time.

Why do I have a feeling that you are not in a company but rather simply rearranged a homework question for help.

However, I will take you at your word.

Jack and John should go into anger management classes. There is no reason to conduct a business meeting with yelling or screaming, that is NOT how one gets their point across.

Since you all seem so confused with the accounting aspects of the company, perhaps you should hire an accountant to assist you.

Thank you for the reply CaptainForest. The thing is John and Jack are both accountant. This is real company, but located in one of the crazy third world countries. The event off course didn't really happened like that, but the controversy was true. And since this crazy third world country is full of crazy people, I was hoping to get some accounting expert answer.

So, to the accounting people outside my crazy country and company, is it fair to compare Balance Sheet like that Q2 of 2005 and Q2 of 2006 (since 2005 the company just started), or is it more appropriate to compare the whole 2005 Balance Sheet with Q2 of 2006.

To John and Jack, you guys shouldn't be reading this.

Thanks

Jack is correct.