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Balance Sheet Limitations There are some aspects of a business that the balance sheet may not disclose For example: True value Because transactions are recorded in the value of the dollar at the time the transaction occurred, the true value of some assets on the balance sheet may not be apparent Suppose a hotel owned the land on which the building sits and that land had been purchased several years ago Because of inflation and demand for limited land, it is likely that the land is worth far more today than was paid for it This may also be true of some other assets The balance sheet normally does not show this market value Goodwill.

Note: An object has the same scope as the variable to which it is assigned. See Scoping a variable on page 220.

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If the operation was purchased from a previous owner who had built up a successful business, and if the new owner paid an amount for that business above the actual market value of the assets, that amount would have been recorded on the balance sheet at the time of purchase as goodwill Goodwill that a business has is normally recorded only at the time a business is transferred from seller to buyer Therefore, if a business was started from scratch, and has a good location compared to its competitors, and/or a good reputation and faithful clientele, and/or a superior work force with good morale, it is probably worth far more than the balance sheet assets show, simply because the goodwill built up is not reflected on the balance sheet Employee investment.

Another value similar to goodwill that is not shown on a business s balance sheet is the investment in its employees This investment is the time and money spent on recruiting, training, evaluating, and promoting motivated individuals Obviously, it is difficult to assign a value to these human resources, but nevertheless, they are assets to any hospitality business Judgment calls Many items recorded on balance sheets are a matter of judgment or estimate For example, what is the best depreciation method and rate to use, and what is the best of several available methods for valuing inventories There are no absolute answers to these questions For this reason, a balance sheet may not reflect the correct value for all assets If the judgments or estimates used are wrong, then the balance sheet is incorrect Changing circumstances.

researcher would determine which subjects developed hypertension and which subjects did not. The researcher would then determine whether earlier measurements could have predicted the later development of hypertension. While longitudinal designs can be extremely useful, their cost and other limitations often make this type of research difficult to conduct.

Balance sheets also reflect the financial position of a business at only one moment in time However, the business is constantly changing, and, therefore, the information on the balance sheet is constantly changing These changes will not be shown until another balance sheet is produced a month or more later If a balance sheet shows a healthy cash position at one time, and a week later most of that cash was spent on new furniture, the balance sheet will reveal nothing about the impending use of most of the cash available..

That s the question, and it s a biggie. On the one hand, you find graphical environments, which enable you to create fantastic-looking Web pages without writing any HTML code. These programs enable you to see your Web page just the way it looks in the browser; that s why these programs are called What You See Is What You Get (WYSIWYG, pronounced wiz-ee-wig). On the other hand, tag-based editors force you to edit HTML code directly. These programs enable you to enter and modify HTML tags, but you ll need to know HTML.

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