I wrote earlier that I was having a hard time understanding all the business terms and applications that were given to us for homework. After a couple more read throughs, I'm still having a tough time understanding it all. There is just so much! I'm sure part of it has to do with the fact that this is the first time I've really tried to learn business; everyone has a hard time learning something for the first time.
But after a few reads, I think I've figured out why I'm having such a hard time learning everything. It starts with the first subject on the list we were given: assets = liabilities + equity.
The equation is simple enough. Once you put it in numbers it's not that hard. What's challenging is what those numbers mean.The packet defines assets as anything a company can use to generate revenue through the sale of goods and services. So far so good.
Then it says that assets can include patents, trademarks, and goodwill. What's goodwill?
Luckily for me there's another packet about goodwill...and liquidating value. What the heck does that mean?
By the time I look up liquidity, I forget what my original question was! It never ends!
The same thing happened when I looked up accrual basis of accounting. It's somehow distinguished by the cash basis of accounting. So in order to understand one basis, I have to know exactly how another works? What???
Joking aside, it's actually extremely frustrating. I have such a hard time keeping up with the transitions that I forget what I learned the second I switch topics.
Thank goodness I picked journalism, and not business, as my major...
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