One of your college friends recently graduated from school with a major in music (specifically piano). He has told you that he is going to start his own piano instructional business. He plans to operate the business from home. You ask him how he is going to account for his business, and his reply is, I graduated in music, not accounting. I am going to teach music, not number crunching. I didn t need accounting in college and I don t need it now! Is your friend right? What financial information might he find useful in operating his business?
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