They
consider the use of the balance sheet by stakeholders; the key component elements of the account and how it is calculated; the importance of working capital and liquidity; how and why financial accounts are window dressed; how and why non-current
assets are
depreciated using the straight line method and finally it evaluates non-financial measures of business success such as the triple bottom line by Elkington and the growing importance of social accounting.
Borrowed money spent toward
depreciating assets and things that do not provide income or an increase in value, such as cars, clothes and living expenses, is
considered «bad debt.»