The Going Concern

originally posted January 19, 2006

For the first time in several months, I am effectively broke. All of the currency earned by my eager to please sluts, Gold and Silver and Copper, has been reallocated to the purchase of land.
I have taken great care to instruct the Lady Jenny in the basic concepts of accounting; debits and credits, expenses and revenues, accrual and cost-based methods. When I return, I will have to enlighten her of the concept of 'The Going Concern'. Simply stated, it is a principle that allows for conducting business as if the business will continue earning indefinitely. Making this assumption allows a business to continue operating even when cash-in-bank has dropped below zero. The idea is not much different than 'running a tab' or 'purchasing on credit'. It is, in fact, exactly that. While money may not be on hand, it is assumed that money will be on hand in the future and debts may be satisfied at that point.
The Boarding House is now a 'Going Concern'.
Of course, there are saleable assets which may trade hands should the notion of turning a profit start to seem too distant. Furniture, for example, or underperforming whores could conceivably be sold off to return my investment to profitability. A business must satisfy its investors. The Boarding House is a business. I am its investor.