Week 10: Kuratko Ch. 11 (Financial
Preparation for Entrepreneurial Ventures)
I was not aware of the number of different things firms muck keep track financially. It's very interesting but also very confusing at the same time. It all seems so daunting to have to keep track of every small expense for a small organization let alone a larger one like Apple or Dell. I've heard of income statements and balance sheets but never really bothered to look any further into what they consisted of.
I was confused by the casf-flow statement because everything goes under that. All financial things are either pluses or minuses so why are they not on one statement.
My question to the author would be why there are so many different ratios. They can be so easily manipulated by the company, they can show which ever one shows them in the light they want to be portrayed in. Although not a single one ratio can show how the firm is doing but there should all be used together.
I was confused by the casf-flow statement because everything goes under that. All financial things are either pluses or minuses so why are they not on one statement.
My question to the author would be why there are so many different ratios. They can be so easily manipulated by the company, they can show which ever one shows them in the light they want to be portrayed in. Although not a single one ratio can show how the firm is doing but there should all be used together.
No comments:
Post a Comment