3 ms·
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 statemen
by 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 agoBecause 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 agohttps://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”?