I was familiar with almost all of the information in this chapter because I've already taken financial and managerial accounting classes. However, I wasn't necessarily familiar with investing activities, and I learned some new information here. It was interesting to learn how long-term investing activities affect cash flow. I also learned quite a bit about pro forma statements that I didn't know before.
2. Confusing aspect of the reading
In "entrepreneurship in practice: watching your accounts receivables" the author made a statement that entrepreneurs sometimes have to "take on credit cards" that charge high interest rates so that they can keep their business running. I am just a bit confused on what the author meant by this statement. Are the business owners requiring their customers to use particular credit cards that have high interest rates? Or are the business owners charging their customers extra to use credit? Both? Also, understanding horizontal analysis and vertical analysis was a bit confusing.
3. What two questions would I ask the author?
How would you recommend start-ups to lower their amount of uncollected account receivables? What exactly is meant by "taking on credit cards" that charge excessive interest rates?
4. Was the author wrong about anything?
I didn't disagree with or question anything the author introduced. Because the chapter was discussing the basics of accounting, the information was all pretty straight-forward and fact-based.
No comments:
Post a Comment