Executive Accounts Question:
Explain Accounting for VC money in financials?
Answer:
It depends on the form in which the money comes in. If it was invested as equity (either Common or Preferred Stock), it shows up on the balance sheet as Paid in Capital. If it came in as debt (such as bridge loan, secured note, etc.) it shows up as debt that must be repaid by the company.
| Previous Question | Next Question |
| Tell me what is the difference between provision and reverse? | Explain what is cash flow and fund flow? |