Over the course of the year, we earned some money.

And so your profit is 100.

So they can see where the buisness is doing well, where it's not doing well, or maybe how rescorces should be allocated

So this right here you could view as our income statement.

The customer pays you 200 for your services

The cost incurred at shutdown of the task

Account for cost incurred at shutdown of the task

On the cash basis it looks like you lost money again.

The cost incurred at startup of the task

Account for cost incurred at startup of the task

So both cash and Accounts Receivables are assets.

Give a better indication of what's actually going on in the buisness, and the way I did it in the first two videos, the first column over here

So this kind of the cash income statement,

Let's now account for the same series of events but instead of doing it on a cash basis

One called fixed cost, that is how much does my building costs?

let's do it on an accrual basis.

Individual freedom is the soul of democracy.

And you didn't have to spend any expenses because you didn't do any accounting.

Maybe as people, because especially in Israel, we're in a democracy.

When did Democracy come into existence?

His price needs to cover not just the manufacturing cost, but also the cost of inventing the thing in the first place.

Do not forget that fascism, communism, capitalism or other isms are all monetary systems.

China leads their explosive growth and their plummeting cost.

And so in month 4 we earned 100, and once again, 100 went away from our cash balance, so we still have 400.

Nice college kid. Socialist.

Or, another way to think about it is the cost of production.

The Limits of Democracy

So what does this tell us?

Before, revolutions used to have ideological names.

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

Kuwaiti Democracy in Action

But, we can escape from this trap, these pincers, I think.

There seems to be a problem with the main reactor.

Communist, Nazi, fascist ...

If you are a Republican, you can take a Democrat to lunch, or if you're a Democrat, think of it as taking a Republican to lunch.

Soviet Union was Communist and it was totalitarian. Communism and democracy are not necessarily things that go against each other.

We can do this.

The most influential example of consequential moral reasoning is utilitarianism, a doctrine invented by

And in the end, there's better bargaining between the authorities and citizens, and democracies, capitalism everything else flourished.

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

Communism, capitalism...

But this is a democracy, Harvey.

Shoot, bitch! Democracy's at stake.

Huh? Democracy time, y'all.

There's a variable cost which is, each widget, they might have used some amount of metal and some amount of energy to produce it and some amount of paint if it's a painted widget.