Sunday, March 20, 2016

Week 10 Reading Reflection

The biggest surprise for me in this reading was how many different items go into a balance sheet and how specific many of them are. After reading each of the terms I understand the need for how specific they are, but I never would have guessed this was how complicated it is to create a balance sheet.

One part of the reading that was confusing to me was the capital budgeting. I don’t really understand the reasoning behind the formula or why this isn’t include in the regular budget as its own category.

One question I would ask the author is, how do you know when you should get an accountant for your venture? Is it based on how large the venture is?

Another question I would ask the author is, how do you adjust the budget when something impactful and unexpected happens to the business?


I didn’t really think the author was wrong about anything. I don’t know very much about accounting, so I am just assuming what is written in the chapter is correct.

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