By Shawn Skaggs Something that many people don’t realize and most people never think about is the fact that your financial statements are mostly just opinions. It’s true of both your balance sheet and your income statement. If you’re shaking you head right now saying “no way,” then let’s talk it through.
The Only Three Facts On Your Financials
There are only three facts on your financial statements. One is cash, another is debt, and the last one is expenses. That may seem like a grim point of view but it’s true. Cash is an indisputable asset that will be worth the same amount (in the same currency) regardless of what else changes on your balance sheet. The same is true of debt. The amount of money you owe doesn’t change with the markets or economic conditions. Expenses are typically historical records of what you’ve paid out so they are facts as well. READ FULL ARTICLE>>