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That is not finance, that is accounting. Those are not the same thing. When Google pays a fee to other companies it becomes revenue. Revenue is a temporary acc

That is not finance, that is accounting. Those are not the same thing. When Google pays a fee to other companies it becomes revenue. Revenue is a temporary account and does not feature in the balance sheet. Retained earnings does, which is revenue - expenses - distributions. This is all tangential to the point that the majority of funding for a company at any given time is likely debt and contributed capital. Apple is over 80% debt funded. Retained earnings accounts for less than 0.1% of Apple’s funding. I have passed the CPA exam so consider if you really think you’ve got the upper hand here. > Now check your math against the publicly available breakdown of revenue and the overall profit and see how nonsensical your math is. Products sales: 61B. Products COGS: 39B. Gross Income of 22B Services sales: 21B. Services COGS: 6B. Gross income of 15B. Consider then that the vast majority of their supporting expenses including 7B in R&D go towards their product (which is the hardware and OS) and I think you’d find this easily supports what I’m saying. It’s closer than I thought though. > So which market share are you making up to make your comment logical? The most important one. The US. > Are you really saying that Apple has no competition in the phone market?? No, you just didn’t read.

scarface_74 3y ago
Well I have an MBA that I never used so there is that.., When Google pays Apple 18B to be the default search engine, it goes in two accounts. It’s recognized as revenue and it goes into owners equity. That revenue is then used to fund expenses. Just like when equity is injected into a company, it is used to fund continuing operations. And the only reason that Apple has any debt is because in a zero% interest rate environment, it made more sense than to have to repatriate earnings.
- jncfhnb 3y ago
  Great. Your MBA level mastery failing to differentiate accounting 101 and finance 101 is very promising. Revenue is not owners equity. It is an income statement account. It eventually feeds into net income which can eventually flow into retained earnings, which is part of owners equity. But nobody calls things a “revenue funded company”. There’s a huge difference between a 6% stake in equity and a 6% source of revenue. And that shows because again, Apple’s retained earnings account is < 0.1% retained earnings. Even if, yes, they pay the bills using money they earn.
  - scarface_74 3y ago
    Because most people don’t understand finance. If I need to fund an initiative - I could do it one of three ways - income, debt or equity. Is that not an accurate statement? How many companies now “fund” their compensation with a mixture of income from their business and equity. You’ve been stretching definitions this whole conversation to make it fit your initial wrong statement. This entire conversation started because someone believed the old wives tail that Microsoft saved Apple by investing $250 million to pro it up or to “fund continuing operations”
    - jncfhnb 3y ago
      > Because most people don’t understand finance. Accounting I’m not really interested in continuing this, but it’s irritating having you write so confidently while making basic mistakes
      - scarface_74 3y ago
        https://www.investopedia.com/ask/answers/what-is-finance/#:~:text=Finance%20is%20a%20broad%20term,process%20of%20acquiring%20needed%20funds https://www.investopedia.com/ask/answers/what-is-finance/#:~.... Finance: “Finance is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments. Essentially, finance represents money management and the process of acquiring needed funds.” This is exactly what we are talking about? Would you not call the “process of a acquiring needed funds” - funding? Would debt, income and equity not be the three ways of “acquiring needed funds”?

scarface_74 3y ago

Well I have an MBA that I never used so there is that.., When Google pays Apple 18B to be the default search engine, it goes in two accounts. It’s recognized as revenue and it goes into owners equity. That revenue is then used to fund expenses. Just like when equity is injected into a company, it is used to fund continuing operations. And the only reason that Apple has any debt is because in a zero% interest rate environment, it made more sense than to have to repatriate earnings.

jncfhnb 3y ago
Great. Your MBA level mastery failing to differentiate accounting 101 and finance 101 is very promising. Revenue is not owners equity. It is an income statement account. It eventually feeds into net income which can eventually flow into retained earnings, which is part of owners equity. But nobody calls things a “revenue funded company”. There’s a huge difference between a 6% stake in equity and a 6% source of revenue. And that shows because again, Apple’s retained earnings account is < 0.1% retained earnings. Even if, yes, they pay the bills using money they earn.
- scarface_74 3y ago
  Because most people don’t understand finance. If I need to fund an initiative - I could do it one of three ways - income, debt or equity. Is that not an accurate statement? How many companies now “fund” their compensation with a mixture of income from their business and equity. You’ve been stretching definitions this whole conversation to make it fit your initial wrong statement. This entire conversation started because someone believed the old wives tail that Microsoft saved Apple by investing $250 million to pro it up or to “fund continuing operations”
  - jncfhnb 3y ago
    > Because most people don’t understand finance. Accounting I’m not really interested in continuing this, but it’s irritating having you write so confidently while making basic mistakes
    - scarface_74 3y ago
      https://www.investopedia.com/ask/answers/what-is-finance/#:~:text=Finance%20is%20a%20broad%20term,process%20of%20acquiring%20needed%20funds https://www.investopedia.com/ask/answers/what-is-finance/#:~.... Finance: “Finance is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments. Essentially, finance represents money management and the process of acquiring needed funds.” This is exactly what we are talking about? Would you not call the “process of a acquiring needed funds” - funding? Would debt, income and equity not be the three ways of “acquiring needed funds”?