The Warped Woodturner (TWW) is a local artist traveling his artist's journey in a suburb of Springbrook, WI (pop. 536). TWW's creative calling is to use a wood lathe to make useless objects from locally-sequestered organic carbon for tourists to bring back to the city to give to people they had to buy something for but do not like that much. His target market is the senior citizens since their vision is not as good as it used to be so cannot see the defects as well. His marketing jingle is: “Bowls as simple as their creator”.

Thursday, October 09, 2008

Financial statements


The next time you read a financial statement pretend you are Conway Twitty. In the make believe world of accounting you need to assign a value to something to make the balance sheet balance. The accounts pretend the value of an asset like a stock or property is the current market value of the asset. It's only make believe (ever hear about supply and demand? The current value depends on who is buying and selling and why)
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So copy and paste this link and sing along with Conway at http://www.youtube.com/watch?v=IsZL10oxPwY as you read the bad news this quarter. It's the same when the asset value is high or when it is low. You only get the lower value when you sell it just like the higher value.

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