Question # 26 - "Hey, I made $100K, shouldn't I see $100K in the bank?"
I get this one A LOT!
I cannot tell you where every dollar went, but the moneys gone because you either spent it, bought some assets and then sold them, or bought some assets then kept them.
Accounting is a closed system. For every debit there is a credit.
When the spending is taking place, people don't really think about what they are doing with their money.