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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.



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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.





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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.

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The CreatePivotTable procedure is simplified (and may be easier to understand) because it declares two object variables: PTCache and PT. These take the place of the indexed references to ActiveSheet.PivotCaches and ActiveSheet. PivotTables. A new PivotCache object is created using the Add method. Then a new PivotTable object is created using the CreatePivotTable method of the PivotCaches collection. The last section of the code adds the fields to the pivot table and specifies their location within it (page, column, row, or data field). Notice that the original macro hard coded the data range used to create the PivotCache object (that is, "Sheet1!R1C1:R13C4"). In the CreatePivotTable procedure, the pivot table is based on the current region surrounding Cell A1. This ensures that the macro will continue to work properly when more data is added.

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..

It had been known from the beginning of the sixteenth century that the time of the observation of a physical phenomenon could be linked to the location of the observation; thus, knowing the local time where the observations were made compared to the time of the original observation (carried out at a reference location) could give the longitude Cassini established this fact with Jupiter s moons after having calculated very accurate ephemeris Unfortunately, this approach requites the use of a telescope and is not practically applicable at sea In 1707, Admiral Sir Clowdisley Shovell was shipwrecked, with the loss of 2000 men, on the Scilly Islands, because he thought he was east of the islands when in fact he was west of them! This was too much for the British.

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