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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 873 |
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During the process of balancing the books the income received in advance would be entered as an adjustment. However, one bank is probably less likely to lend Connie the money. Connie may need to seek several sources. The business has been in existence since November and does not give a good overview of the profits and/or losses...
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A small profit was shown during that time.
Hendricks (2005) provides the following for entrepreneurs after one year of business start-up:
Personal savings, friends-and-family and bootstrapping suffice to start many a new enterprise, but as your company grows, its needs for capital are likely to outstrip those initial funding sources...
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The statement of financial performance is based on data relating to past transactions and events. Hence the statement of financial performance is of no use to an investor’s decision making process.
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