I'd like to say a few words about a very important principle or, let's say, approach in accounting that's called double-entry bookkeeping. Well, it goes back to the Italian mathematician, Luca Pacioli, that lived at the end of the 15th and the beginning of the 16th century. And at that time, there were no negative numbers. So accounting was created in such a way that instead of having something positive or negative, we had something that goes in one place and some balancing thing in the other. So that resulted in the approach that is called double-entry bookkeeping. This deals with the famous debit and credit idea. So the T-account for any asset liability or piece of equity consists of two parts. The left side is called debit and the right side is called credit. And the balance is in changes. They are depicted with respect as debit and credit, but it depends upon what kind of an asset or liability we are studying. So the next table shows us basically positive balances in assets, then asset growth, and then liability. When they go down, all that is debit. However, on the credit side, we can see that this is positive balances. Here, I have two positive balances in liabilities net worth. Well, net worth must always be positive in accounting. Even for a zombie organization, normally, it's positive. And then if liabilities go up, this is also on the credit side. And if assets go down, this is on the credit side. Now, to some extent, you may argue, "Well. Wait a minute. Why the hell do we have to worry about these things because they clearly deal with certain processes that don't seem to be very directly linked to the ideal valuation in finance? Well, yes and no. And the main idea here is that when we have a transaction, so something happens, we can say that first of all, this transaction of that deals with two or more T-accounts. So, for example, if you spend cash, you cannot say that your cash has been diminished. You have to find what other asset or liability has changed as a result of that. Why is that so? Because double-entry bookkeeping is closely linked to the accounting equation. So we can see that the accounting equation is sort of a conservation of energy law in accounting and finance. So you cannot say that some asset has disappeared or some liability has grown as a result of nothing. So this is the key story because otherwise, we can make a segment of mistakes. So we can say that, but in all transactions, delta of assets is always equal to delta of liabilities and net worth. So the left side should always be equal to the right side. It's like two sides of the same coin. Again, I perfectly understand that sometimes I sound trivial or offensively or even stupidly simple, if you will. But this is important because as always, I focus on something that is key in accounting and key in finance. Because if you are not only comfortable with that, but if you always remember that this is in the core, then you are much more likely to avoid committing mistakes. Now to give you an example, a very simplistic example of how this works, let's say that you purchase inventory and this is worth $50 and you pay $20 in cash and $30 credit. So how this transaction is being recorded, so you say that this is the inventory. This is the asset T-account. So here comes $50. Now, that also affects another asset account, which is cash, and here on the credit side, this is $20. And also, there is the accounts payable and here come $30. So that is how it's actually being recorded. And again, although that's extremely trivial, but in order to keep this in mind, what we'll do in the next episode, we'll go over a certain period of a company that will engage in 15 transactions in a row. So we will first look at all these transactions and then we will record them properly. Well, we will not use that many T-accounts. We will record that in easy debit or credit way. And then with the use of this information, we'll be able to quickly and nicely come up with both the income statement and the balance sheet.