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

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

The customer pays you 200 for your services

And so your profit is 100.

So this kind of the cash income statement,

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

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 this right here you could view as our income statement.

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

So both cash and Accounts Receivables are assets.

So I'm gonna start of, we're gonna focus on month 2 and what I've done is I've rewritten some of this accrual income statement down here so it really looks like a statement so this right here is the income statement for month 2 on an accrual basis.

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

So, I wanted to show you something.

Nice college kid. Socialist.

Now either one of these is legititmate ways of accounting but its good to know the difference

That's the only way democracy will work in sangala.

Google is a company born of idealism.

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.

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

Fair value whats the current market value today so it sound like very fancy words but its a pretty simple idea

The reality is that even in democratic societies today, we do not have good answers for how you balance the need for security and law enforcement on one hand and protection of civil liberties and free speech on the other in our digital networks.

I am on the side of democracy.

It meant something that would connect us all together.

When democracy came to India 60 years back it was an elite concept.

Take the Other to Lunch.

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

China, I believe, still has some of the excellent raw fundamentals mostly the social capital, the public health, the sense of egalitarianism that you don't find in India.

In the next video, I'll try to reconcile what the Accrual income statement is telling us and the actual cash.

Chile is socialist now.

Please raise your hand high right now. OK.

So, asked in that way,

They ended capitalism and built a socialist society.

Franklin said, A republic, madam, if you can keep it.

And I think the getaway message from that would be that Islam, despite some of the skeptics in the West, has the potential in itself to create its own way to democracy, create its own way to liberalism, create its own way to freedom.

And even then, what kind of socialism did they practice?

Which seems like the idea that these rewards don't work that way.

Well, that idea of biomimicry, respecting the wisdom of all species, combined with the idea of democracy and social justice, respecting the wisdom and the worth of all people, would give us a different society.

She's my accounts manager.

Now there's one thing that you're probably confused by right now well you know, how do we reconcile everything with the cash we know that over this period we got 200 in income on an accrual basis.

In this very lab.

We live in a society of democracy.

And they were not used to that in communist 2.0 Vietnam.

Mu and sigma squared.

So we have to lay the boundaries, the rules of engagement, before we actually start designing.