I was surprised when they talked about how the financial information pulls together all the information presented in the other segments of the business and that these segments have big meaning.
2) Identify at least one part of the reading that was confusing to you.
I was a little confused when they mentioned that once the operating budget has been prepared, the entrepreneur can proceed to the next phase of the budget process, the cash flow budget. I thought there would be more steps involved.
3) If you were able to ask two questions to the author, what would you ask? Why?
Why is it that the traditional accounting equation is not: assets + liabilities = owner’s equity? It sounds correct to me. Also, how is it that capital investments or capital expenditures are expected to last beyond one year? It seems like a pretty difficult task.
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
I don’t disagree, but the concept of the cash-flow budget has always been hard to understand.
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