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J**D
A picture tells the story
Having MBAs in General Management and International Business, if I had this while studying for my degrees, it would have helped a lot.
D**H
Financial Statements illustration mistake
On page 14, there is an illustration on the balance sheet that supposed to reflect the sale of $90 worth of lemonade. It's recorded to cash and equity. This would be only possible if you sold air... On the next page, there is an income statement that shows that from total sales of $90 only $64 is left to the owner - this is your equity, more specifically, Retained Earnings. Equity would show $90 if you took your personal savings and injected into your business as cash. The change in equity from the sale of lemonade should only include what business retains after accounting for all expenses. All expenses would be reflected as reduction of cash or increase of liability on the balance sheet.I hope it's just an oversight of the author and not what they teach at Brigham Young University.
Trustpilot
1 day ago
2 days ago
