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

So this kind of the cash income statement,

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

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

And so your profit is 100.

So hopefully this gives you a idea of why accrual gives a better picture of what's happening in a buisness.

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

The customer pays you 200 for your services

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

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

let's do it on an accrual basis.

So both cash and Accounts Receivables are assets.

An unexpected error has occurred.

When did Democracy come into existence?

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.

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

Individual freedom is the soul of democracy.

A famous quotation can be found if you look on the web, you can find it in

And this is what the inevitable problem looks like.

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

What I did is, I emailed essentially anyone that has anything to do with pancreatic cancer.

Yes, well, we dream on a budget here, don't we?

Before, revolutions used to have ideological names.

There seems to be a problem with the main reactor.

Communist, Nazi, fascist ...

We can do this.

Nice college kid. Socialist.

So instead, I decided to go for a lab.

Communism, capitalism...

Google is a company born of idealism.

There's no telling what the Separatists have planned.

Oh, the integer is going to max out at some value based on computer hardware. But no.

And maybe a little bit less of a lavish lifestyle.

Simon's Shark Slime.

What's your budget, dearie?

They're annual budget for corporate espionage

But it's gonna take money.

The Limits of Democracy

The constitution's gone.

(Laughter)

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

But the Soviet Union had neither a capitalist system nor a democracy.

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

So what does this tell us?