Essay on Notes On Debt And Debt

1119 Words Apr 24th, 2016 null Page
Most do not consider the Bible to be the applicable source and it is overlooked for its useful information. On the topic of accounting and debt the Bible makes it clear that we should avoid debt, “The rich rule over the poor, and the borrower is slave to the lender.” (Proverbs 22:7 NIV) In our previous accounting course we learned that when taking out a loan, or borrowing money, you have to repay that principle plus whatever interest has occurred based on the rate applied. While it may seem like a quick fix when in need of funding you are a slave to your lender until your debt is paid off whether you have the money or not. With a high debt-to-equity ratio your company will appear to be risky (Wild & Shaw 2010 p525). The Bible also heeds us to be cautious with our investments, to not over invest ourselves. “Know well the condition of your flocks, and pay attention to your herds.” (Proverbs 27:23 NIV). The course textbook also touches on this topic in reference to action steps managers can take such as planning (Wild & Shaw 2010 p4), setting goals and strategies in which to achieve these goals; and control (Wild & Shaw 2010 p4), which is the process of monitoring planning decisions and evaluating an organization 's activities and employees. This cycle is ongoing in any successful business as you need to be constantly revaluating and providing feedback throughout the company. When a company takes time to really know their assets and make a plan of how to strengthen those…

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