chapter 1: extra questions Flashcards
1
Q
if you borrow money, do you consider it as getting more cash, getting more earnings, or none?
A
you do get more cash but borrowing money isn’t earning money
2
Q
if you spend money on an asset, do you lose earnings?
A
no because they add value to your company
3
Q
if you spent a certain amount on assets and you used a part of them, are they all considered as negative earnings?
A
no only those that were used
