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Pastimes : Austrian Economics, a lens on everyday reality -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (156)	1/28/2003 10:54:48 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 445

Tim, That's better. Assume that the company vault is empty at the beginning of 2002. During the year, the company takes in revenue of $50M in real Federal Reserve Notes and pays out $4M of those notes for paper and ink. No other activity or movement involving real Federal Reserve Notes occurs, and no debt or other obligation appears. At the end of 2002, the vault contains $46M in real Federal Reserve Notes. If this $46M is not profit or earnings, required to be paid out in dividends by company policy, what is it? What can the company accountant say that will prevent him from wearing cement overshoes at the bottom of the Hudson River if he claims a loss and the owners find the $46M in the vault? The problem with accounting standards is a lack of proper motivation. -g- Regards, Don