Net WorthPosted: December 1, 2011
I was talking with some accountants about a story I heard recently.
Someone told me that The Olive Garden’s net worth is greater than the country of Italy’s. If true, that emphasizes how serious Italy’s debt problem is. But for all I know, TOG’s net worth may be greater than the U.S.A.
CPA James Pistillo (scroll down in the hyperlink for his mug) offered this interesting question: Is the net worth of the entire planet zero? That is, if we take all the world’s assets and subtract all of its liabilities, is the difference zero?
I typed “difference” because that’s what is left after you subtract a subtrahend from a minuend. Click here for terms used in addition, subtraction, multiplication, and division. I scored 780/800 on the math
portion section of the SAT (when it was the SAT) but do not remember ever encountering these terms.
Back to James’s question: I thought about the Adam and Eve allegory. What would their balance sheet look like the instant they arrived on Earth?
They didn’t have any clothes–so those are out. They also didn’t have pockets to hold a wallet, although I suppose Eve could carry around a dinosaur purse. But what would she put in it? Rocks? Dirt? An apple? (Ouch.)
Did A/E carry any debt? Probably not.
I’d argue that they had assets–their human energy, minerals under their feet, lots of fruit and water, and some snake steaks if desired.
So let’s say the snake offers them credit at his fruit store. He sells them an apple and records a receivable on his books, and they record a payable on their books. Those offset on the planet’s balance sheet, but they still have their assets.
How does that translate to roughly 7
trillion billion people today with myriad assets and liabilities? I wonder if all earthly transactions since the dawn of time have offset each other, and the evolutionary spark or God or whatever started this place is the original asset. If true, that should make for a positive net worth for the planet.
My head hurts. Thanks, JP.
Here’s Earth now. I got sick at 0:54.