Tilted Forum Project Discussion Community - View Single Post - finance course-- help!

Yakk · 01-05-2006, 03:35 PM

"net working capital declines by $73"

Clear statement.

"net capital spending is -$211"

It looks like the problem here is "can you figure out what a negative spending amount means."

Does it mean you spent 211$, or does it mean you "unspent" 211$. Both are reasonable (well, sort of), and it depends on your notation.

Having "net capital assets decline by POSTIIVE NUMBER" and "net capital spending is NEGATIVE NUMBER", and have them both represent a loss, and anywhere near each other, is something I'd fire my accountant over.

Having the convention "money leaving is negative, money coming in is positive" is a good one. Having the convention applied randomly and inconsitently is idiotic.

I apologize for not being able to answer your question.

01-05-2006, 03:35 PM	#3 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	"net working capital declines by $73" Clear statement. "net capital spending is -$211" It looks like the problem here is "can you figure out what a negative spending amount means." Does it mean you spent 211$, or does it mean you "unspent" 211$. Both are reasonable (well, sort of), and it depends on your notation. Having "net capital assets decline by POSTIIVE NUMBER" and "net capital spending is NEGATIVE NUMBER", and have them both represent a loss, and anywhere near each other, is something I'd fire my accountant over. Having the convention "money leaving is negative, money coming in is positive" is a good one. Having the convention applied randomly and inconsitently is idiotic. I apologize for not being able to answer your question. __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.