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

And so your profit is 100.

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

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

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 do it on an accrual basis.

So this kind of the cash income statement,

So both cash and Accounts Receivables are assets.

It is time to heed the words of Gandhi

And over 25,000 BTUs of body heat.

We found trace amounts of bioresidue.

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.

George Bush thought he was going to invade Iraq, find a bunch of weapons of mass destruction,

In the city, large quantities of garbage are being produced every day.

The machine generates a lot of electricity.

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

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.

Communism, capitalism...

Google is a company born of idealism.

The Limits of Democracy

The constitution's gone.

(Laughter)

(Laughter) (Applause)

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.

Mass production?

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

So what does this tell us?

Democracy Comes Second

Kuwaiti Democracy in Action

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

And what do we teach in these schools?

Is that democracy?

And I'm going to do that in the next video.