You were.

In the breaks of your TEDx event, it's good to provide food and beverages.

let's do the accrual accounting income statement.

You could have gone on vacation on month three.

You also get 200 in advance from a customer that you have to cater for next month

So now it get's interesting, because you performed the catering that month and the catering you performed that month is worth 400.

I arranged catering for tomorrow's party.

I'm Nelson Dorkoff.

I don't even know what some of that stuff is! Is it even legal?!

But if you look at the accrual basis it better reflects that you actually did some catering that month.

let's imagine a situation where in month 2 you only have 100.

To reduce costs, a proper buffet can be replaced by light snacks, or finger food.

Even though I've never seen any article. Have you? You set your own schedule.

And today I have Nelson.

You also get 200 in advance from a customer that you have to cater for next month

To calculate catering cost, multiply the number of expected guests with the cost per person.

Why would I want to invest in this buisness that's losing 200 a month?

The person you are catering for, that you're buying those 200 of supply for, they're not going to pay you until next month, so you tell the people that you need to buy stuff from

So you did no catering in month 3, and because you did no catering in month 3, you have 0 revenue in month 3, and then you also have 0 expenses, the way that you account for the 400 that you got, is that your accounts receivables goes to 0, and that goes to cash, so the negative 100 you add 400 to it, so it becomes positive 300.

Generally, you will need to pay for some of your staff, your location, technical equipment, catering, and communications.