Week 10 Reading Reflection

The biggest surprise from the reading was why the balance sheet always balances. This was surprising to me because I did not think of it as loss and gains at the same time. While you are at a lost of money for the merchandise, you are at a gain of the merchandise, this causes the balance. Instead of being at a loss until you make a profit with the merchandise you purchase. It is a continual balance with money and product instead of a cycle. Understanding the balance sheet was confusing to me. This section was confusing to me because it was hard to follow with the three sections and classifications of various types of accounts. If I could ask the author two questions they would be, how accurate and reliable is the statistical forecasting technique of simple linear regression? And how does the payback method work if the entrepreneur does not get the entire money by the end of the payback period? I would ask these questions these are questions that arose while reading each corresponding section. There was not anything I disagreed with the author.