The problem with "adjusted" financial accounts
Capitalmind Podcast
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What Is the Problem With Cash Accounting?
The problem in an accounting system is that it doesn't accurately reflect anything. If I have 100 rupees in my hand that's 100 rupees that I own and period. It doesn't matter that I have to pay someone 200 so you know the money will go out in a couple of months. This is called cash accounting and cash accounting is what governments all over the world follow. But for businesses they can say listen I'm giving you something over six months and I finished three months of this. You have con a contract with me a legal contract that says you have to pay me if I when I deliver the entire project to you. So there are lots of interesting rules on top of like
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