Mergers & Acquisitions Question: Download Questions PDF
Can you please explain the difference between 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.
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