Hacker Read

rando18423 · 2016-06-22 05:11:31+00:00

Hahahahahaha what? That's not how balance sheets work

ncpa-cpl | karma 500 | avg karma 3.29 · | 2022-11-17 17:48:32

That Balance Sheet is so unbelievably wrong.

I would have gotten an F if I had done that in my first Accounting 101 quiz.

Just to see it describing the financial situation of a company holding millions is just unbelievable.

reply

keiran01 | karma 33 | avg karma 6.6 · | 2022-02-21 19:52:44

costs don't go on the balance sheet :p

jhpankow | karma 214 | avg karma 2.74 · | 2021-08-25 10:16:48

I'm sure it would make sense if you saw the balance sheet.

sadga | karma 163 | avg karma 1.48 · | 2012-08-31 15:16:51

That's not how GAAP works.

drexlspivey | karma 4484 | avg karma 3.46 · | 2023-01-19 06:13:59

That’s not how income statements work..

dlp211 | karma 2017 | avg karma 2.1 · | 2021-04-07 23:30:41

That's not generally how GAAP works.

jdavis703 | karma 7391 | avg karma 2.93 · | 2021-08-22 13:45:49

This is not how GAAP accounting works.

m3kw9 | karma 3357 | avg karma 0.75 · | 2023-01-30 10:06:44

Or maybe it’s just a balance sheet thing

markus_zhang | karma 5615 | avg karma 1.76 · | 2022-06-22 19:55:23

Just follow the balance sheets.

creddit | karma 2146 | avg karma 3.45 · | 2023-03-07 00:20:08

I have no idea what financial statement you’re looking at but this is not remotely correct.

doctor_eval | karma 5374 | avg karma 2.62 · | 2022-02-12 23:19:54

But a balance sheet is not a financial model. It shows how much money is in the bank, how much people owe the company - and how much the founders have loaned the company.

PG might not personally read balance sheets but if nobody checks them at all, it would be pretty weird.

reply

onlyrealcuzzo | karma 13783 | avg karma 3.37 · | 2023-12-13 09:29:07

No, they're paid in diluted stock, which does not impact the balance sheet.

ape4 | karma 4305 | avg karma 1.73 · | 2013-08-23 10:40:13

Won't this show up in a balance sheet somewhere for the companies?

perl4ever | karma 7545 | avg karma 0.95 · | 2021-01-08 18:49:17

Their balance sheet? Or their earnings statement?

MarkMc | karma 4150 | avg karma 2.44 · | 2014-09-21 17:03:35+00:00

> However, if you have the summary balance sheet for two consecutive years, then you can calculate the profit or loss.

But what if the profit is all paid out as dividends? Then there might be no significant change to the balance sheet, I suspect

reply

bmitc | karma 14276 | avg karma 3.06 · | 2022-11-14 14:02:50

I made a comment elsewhere about the balance sheet. When I looked at it, it indeed looked like something Sam Bankman-Fried just typed into Excel on the weekend of their emergency meeting.

How in the world is a balance sheet not a report that is generated by a system, viewable by any executive? Did they not have a CFO or any finance people or accountants?

reply

yellowapple | karma 10766 | avg karma 1.37 · | 2021-11-05 22:22:26

The balance sheet doesn't include externalized costs, last I checked.

tomphoolery | karma 2129 | avg karma 2.49 · | 2013-04-24 22:57:34+00:00

Why would they have a balance sheet if they don't/didn't make money?

biorach | karma 1801 | avg karma 3.18 · | 2022-02-13 04:02:47

He said _he_ is not going to look at it. That's all.

Tax authorities, YC's due diligence team and others will want to look at it. Anyone competent enough to start a company will know this.

Interpreting this as "pg says balance sheets don't matter at all to anyone" is.... weird. Repeatedly pushing this point is weirder. Maybe take a break from the internet for an hour or two

reply