The ACCOUNTING EQUATION For BEGINNERS
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- เผยแพร่เมื่อ 29 พ.ค. 2024
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The Accounting Equation explained in full. This episode is part of a series exploring Accounting Basics. To see the whole playlist check out the link below. In this Accounting tutorial you’ll learn how to derive the basic Accounting Equation from scratch. I will demonstrate the relationship between Assets, Liabilities and Equity which together represent the three elements of the Accounting Equation. This is the most important concept to understand when studying Accounting for Beginners because it is the foundation of the Double Entry Accounting system.
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⏱️TIMESTAMPS
00:00 - Intro
00:30 - How the Accounting Equation Works
00:52 - What are Assets, Liabilities and Equity?
01:13 - What is the Accounting Equation?
01:30 - What are Assets, Liabilities and Equity made up of?
02:03 - What is a Balance Sheet?
02:16 - Accounting Equation Examples
03:37 - Recap
04:16 - What is the Best Accounting Book for Beginners?
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#accounting #accountingbasics #accountingstuff
I have a bachelor's degree in accounting and this 5 minute video was more helpful than all of my accounting courses....
Hey Emma, glad to hear the video helped! Sometimes it's useful to revisit the basics
Same story here, even a masters in finance and risk, but this just could've made things way easier back in the days
do your rly have a bachelor's degree thooo hmmmm?
@Lyrtha Kalas welcome to the whole world education system
YES!
You're a bloody legend for splitting the video up into titled sections. First time I've ever seen that on TH-cam to be honest, and it's definitely one of those things you didn't know you wanted until you had it. Great video. You should probably allow ads on your videos as soon as you can cause this is good content and you should be paid for it.
Thanks Jonah!!
Man... can you teach professor's how to teach?
dude I agree, I don't understand anything at school.
@@AyurrRBX he helped me get a B on my 1st test.
no doubt that
Amen!! Preach
Actually, he's amazing, am wondering if he's doing personal coaching
Anyone getting into accounting now, you’ll learn more from this 5 minute video that makes sense, than about 8 hours of your first classes in accounting
Yes!
bro just mock my indian lecture in single comment
There are many videos for accountancy but this video was best
Cheers buddy 🙂
agreeeeee>
Man, you're genius. I'm a high school financial accounting teacher and your video will help me a lot when explaining accounting equation to the first year students as I'll be teaching it today.
Wish you The best maam
You are teaching accounting in High School? Man, must be a good high school. I usually refer to high school as only really useful for basic stuff like math and history, add geography if they can teach that well, but to be teaching something as career practical as accounting is something else, glad some schools are getting better at recognizing useful material
James I wanted to say thank you. I just passed my MBAs accounting exam and I don't think I would have done anywhere near as well without your videos, many many thanks.
Congrats Miles, well done!!!
Hello Miles. May i please ask, as i possibly want to pursue a career in accounting. Is it hard and boring?
Accounting can be challenging at times but a rewarding career. You do mostly sit at a desk all day so there’s that. If you are highly interested I would suggest a shadow or internship to test out the waters before you decide completely.
@@stffaluffagus Thank you so much!
You succeeded in teaching me my first lesson in accounting. I've had so many teachers over the years who tried and failed. Thank you.
It is a pleasure!
That was one of the best explanations I've heard for any topic. Great job
Thanks, I’m glad you found it useful
You are singlehandedly saving my career lol. I watched this in my 11th grade 5 years ago, I'm taking my CMA exams (equivalent to CFA kind of in India) and here I am watching your videos again. Thank you so much!!
Great video! I took accounting 30 years ago and am now re-freshing my accounting in hopes of opening a business in my retirement years. I love your simple, clear explanations!
Cheers Gail! We all have to return to the basics from time to time. Have a happy new year!
Learnt more in a week of watching your videos than a semester of accounting at degree level, thank you so much bro your a life saviour!
you have saved me 2 lectures worth of learning in literally 5min, lad
Hope it's making sense :)
This is absolutely wonderful!!! Better explanations than 3 semesters of accounting coursework and a year and a half of bookkeeping work that I've done. Thank you, please keep making more of these.
1st year CA student here, Accounting has been showing me flames when it comes to the Accounting equation. I'm grateful I landed on your content. This video has just made me optimistic and increased my IQ😂💯💥💥you are a blessing bro. watching all the way from South Africa.
The best teacher I have ever seen on TH-cam thus far hands down
Thanks for your kind words!
Hi James, thank you for making this accounting subject so fun and alive. really enjoy your video a lot!!! Keep on watching and learning from your awesome videos
The best accounting video for beginners I've seen so far. I am learning accounting with no experience and this video definitely helped me understand the most basic things. can't wait to see the rest of your videos of this Accounting Basics video Series. keep it up!
Do you know how hard it is to find someone who 1) knows accounting. 2) it actually good at teaching. 3) makes quality videos. I’m not joking when I say this, your literally the reason I’m gonna pass my accounting class.
Thank you so much !
My course directly told me that the sale of merchandise of $100 :
1) Increases cash by $100
2) Increases Retained Earnings by $100
I was unable to reconcile this until I watched your video !
Also,
Stuff that business owns = Stuff that business Owes.... so powerful yet simple !!
Boy oh boy -- I came across your channel while looking for resources for Bookkeeping, as I am changing gears from IT to bookkeeping/accounting. Your content and presentation is brilliant and I have learned a ton thus far -- more binge watching this weekend. Many thanks for the great work!!! =)
Dude! Wish I had your videos in my first year studying accounting. This is a gold mine. I'm sharing it with friends.
Cheers mate, thanks for sharing!
Thank you so much James! Just to support some English. For anyone who doesn't know "mark up" means, "mark up" means increased price of goods. From 3:00 in the video, there is "60% mark up on cost". The cost is $5, the increased price is $3 ($5*60%), which means the "mark up" is $3. Therefore, the original cost is $5, the mark up is $3, the sale price is $8.
Hope it helps! And correct if I were wrong.
really helped to understand
@@crismejeli2082 Thanks Cris!
OMG! Just the first 2 minutes were more useful than my last month in class.
This was so helpful, thank you!
I finally understand
I'm currently in a accounting class as a junior and you explained this better than my teacher . I was lost at sea when my teacher taught me this but I came to this and I think I have a better knowledge. Thanks
This is exactly how I felt after we covered it in our lesson.... I thought I'd never get it but this video has just made everything clear!
No worries, I'm glad to hear that it's making more sense for you!
@@sarahmjones13 That's awesome!
This was incredibly helpful as someone who has absolutely no experience in this. Your videos were the first I watched on accounting.
I was struggling with the logic of this equation, but the idea that what you owe depends on who the lender is (so, Liabilities for 3rd parties, Equity for the owners) is a GENIUS way of explaining it. Thank you!
Great to hear it's clicking for you
Thank you so much ! 2 years ago I watched this exact same video before my exams, and here I am again watching it for revision. Thank you !!!
Best of luck!!!
nice job!! I liked the visuals & graphics. good clear & simple explanation
Thanks Tina! Those graphics take a long time to make so I'm glad you liked them
Thanks for such a great explanation for all this principle that I had hard time understanding at first. I would like to watch more of your videos and recommend your channel to any other friends who want to learn accounting!
Finding you now on my new journey of obtaining my MSA! Thank you for all that you're doing/done to teach others!
James - you are EPIC! Thanks so much for creating these easy to follow (and entertaining!) videos on what can be a confusing subject! I'm starting my own practice (Mediation/Conflict Resolution/ Facilitation) and returning to bookkeeping/accounting after an absence of 20+ years. You've actually made it enjoyable! Every good wish in your own career.
Thanks Thomas and best of luck with your new practice!
What a great start. With the number of books I have bought on Accounting I could open a small library. At last, some clarity from you right from the outset. Thank you.
Cheers Jamie, glad the video helped you out! Would you recommend any of those books? I am looking for new ones to review
Accounting Stuff of course. Do you want me to reply here or direct where I can send you screenshots.? Jamie
I've been struggling to understand debits and credits since my first accounting class this is the first time it's been explained and visually shown in a way that it really clicked for me. Thank you so much for making this video! You've gained another subscriber!
Nice one Sarah! Debits and Credits can be so confusing. Glad they are making sense now
BEST, Absolutely best examples and explanation of a balance sheet. I'm not an accountant and I'm trying to determine what goes where on the balance sheet (I mean, the current and non-current/ liability and equity spaces), and this video has made it very obvious. I'm still going to need more training but I've got to say, no one made a better example/ training on TH-cam like you. Thank you.
I just found your channel and these videos are just soo concisee and helpful.. I feel like this channel is underrated.. thanks for the video!
Thanks, I'm glad you're enjoying the videos :)
This is very first channel i have subscribed for accounting learning as I found it good. Just wanted to make a point here.if you could slow down your speed , will help you understand better. Thanks . You are doing good. Keep it up
Hey, thanks for the sub! I appreciate the feedback and will bear it in mind for future videos. I the meantime... have you tried slowing the speed of the TH-cam video in the settings, maybe that will help?
Thanks for considering my point. I m afraid if I know it.
This channel WILL help me become an accountant. Better to learn early than wait to learn!
You've got this!
I'm so happy I found your channel I could cry. I'm trying to go back to school to provide for my daughter and my teacher only reads out of the book. I feel like I can actually do this now. Much love from Texas!
It was amazing.
Plz explain depreciation,provisions and Reserves
Thanks for your suggestion! A few people have been asking for the same topics so I will make sure to cover them in the future 👍
Great!!! so helpful I just started ACCA after my Bachelor which is waaaay different than my major,, this really helped me a lot perfect series for a beginner like me
That's great! I did the ACA which is similar to the ACCA so can feel your pain! Happy to hear that you find these useful. Best of luck with the course!
@@AccountingStuff I would like to request for you to share something like 5 reasons abt ACA and related to that. Extremely curious to know. It just a thought that it will help many people out there .
@@farahabdullah4838 Thanks for your request!
Super! Thanks for you time, I am starting my accounting class now and I am so glad I saw this video before, sounds a great start for me to visualize the hole picture of what I might see this semester, thanks you again!
I love the way you explain things. You make it so much easier to understand. Thanks for this video! Looking forward to checking out the others.
Thanks Shamz! I'm glad you enjoyed it. Hope you're keeping safe
Hey 😁 I'm done with my exam yesterday....it went well!!! Thx for those videos 😍🤗🙏
Well done, I'm happy it went well! 👍
Great stuff James - I'm an accounting dummy and this makes it really clear.
Thanks Eddie!
Its great James - of course its Alison commenting. Eddie is no accounting dummy.
Haha good to know Eddie is all over this. Thanks Alison!
I found out about you a few months ago and now resort to your videos anytime I'm confused or looking to further understand Accounting. You're a wonderful teacher and I'm so grateful for your time and dedication to your videos!
Thanks for your kind words! All the best with your studies :)
Brilliant way of explaining it! Cheers and keep up the fantastic work!
Thank you, thank you, thank you! You just made everything "click" for me. 😄
Cheers Kelly, great to hear it's making sense
So helpful! Thank you
No worries :)
This is the best and most concise explanation I've seen on here. Amazing Job!!! Thank you so much
Cheers Cesar!
The best explanation I've listened to so far. Thank you.
Cheers, I'm happy to help!
Hi James, thank you for always uploading such useful stuff I am completely lost at school. You helped me a lot for my previous test, thanks again..
We are now on the topic « TAX ACCOUNTING » could you do something on that too pleeaaaase 🥺
Thanks for your suggestion!
I am getting a %100 in my financial accounting class iA this year.
I hope so! Good luck!!
Shirt! I spent 4h to learn all of this in 2 chapters of Survey of Accounting and you made it all clear with a 5min video? You are a life saver!
Great to hear it's making sense!
The best basic video I have seen yet!!
My Accounting teacher played us one of his videos and she said that he's attractive😭
For easy reference:
0.75x playback speed
Thank me later ;)
Thanks James. You've explained the backbone of the entire accounting system so well... Keep it up
Cheers buddy!
My goodness. This whole series is SO helpful. The stuff our school gives us is not nearly this good. This series is such a great primer. Can't thank you enough for doing this!
Cheers Kris! All the best :)
Jus like a re breather of my high school Accounts
I hope it helped you refresh your memory
are we gonna ignore the fact that you never blinked lmao.
I never blink.
@@AccountingStuff I have seen it in other videos!
this guy is the only person who can make accounting understandable
You are the one who really wants us to learn and so you make everything which can be understood by everyone in need and love the way you reply to all the comments👍
Accountancy is easy when we learn from someone like you...
Blessed to find your channel ❤️
Glad you're finding these helpful! All the best :)
could you do an income statement please
Will do!
how on earth someone dislike this vid!😞
I have test in a couple days and these videos are what I'm bringing rn, super helpful ty !!
I’m glad I found your channel. Just ordered that book with your link and also your cheat sheet bundle. Thanks for all your work!! ♥️
I got confused on the 60% mark up on cost part, would someone be able to clarify it for me?
Apologies, I should have been clearer... A Mark Up on Cost is the difference between the Selling Price and the Cost of Goods expressed as a percentage of the cost. So if the Goods costed $5 then then a 60% mark up would mean $3 of profit (60% x $5) which means the total selling price is $8
What is the cost for popcorn and where does it come from ? 🤷🏼♀️
The popcorn was his own equity, he takes it by himself to the company (no Cost/Liability).
U might notice he credited the Owner Equity when he added the Popcorn as Inventory.
thank you for making this video the first video that i understood and it made me feel a little bit better to understand SOMETHING. so I am very grateful
This was extremely helpful. You did a great job of explaining this. Thank you so much
THIS WAS SO EASY TO UNDERSTAND. sharing this with all my friends
I love this guy... you just made my life simple with one explanation at 0:40
Thank you so much!! I've sampled MANY youtube accounting videos but always find your videos to be understandable, clear and concise!!! You are my go to (youtube) guy for understanding accounting principles!!!!!
Thanks Lynn, glad you're finding these helpful :)
man you made my life easier! ive read counless of articles online but still struggle understanding accounting stuff fully. this is highly recommended to my friends and colleagues. subscribed and liked all videos. hope this helps spread your videos, thanks man!
Legend, thanks for all your support! I'm glad to hear that vids are helping you out
You sir, explain what all the others don't explain. Thank you.
You just earned my subscription. I need to do bookkeeping for a small business and I can tell by this first video I can learn from you.
I was looking for a channel like this. Thanks for the helpful info.😁👍🏽
No worries, hope it helps!
Awesome, way to put it into practical terms. Thanks again.
thanks for the lectures, well understood! expect more videos of basic accounting system.
You are absolutely great professor.
This is really helpful to me , thank you 🙏🏼
yo Bless this channel man ive grasped the basics of accounting lets go!
This is by far the best accounting / finance related video I have ever watched.
That's kind of you to say!
Best explanation! The way you shuffled expenses and dividends and explained debit-credit rules from first principles just awesome!!!
Thanks Ajit!
Thanks for this video series. Easy to understand, edited and presented the concepts very well. Very helpful for a new accounting student to help me get the "big picture"!
Cheers Michael, great to hear that you are enjoying the videos. All the best!
I knew after you explained this I would understand it, thanks, perfectly clear now.
Thank Mr.AccountingStuff. You are a good man and this is a great playlist.
Cheers Joe, that's kind of you to say!
Well explained. Your presentation is awsome. Short videos with a lot of learning. Thank you !
Cheers!
that was clear and simple thankyou so much!!!!!
This video was super helpful, thank you!
I just shared a link to your channels on all my WhatsApp groups. You are simply amazing. Well done.
Wow in 5 minutes you explained the accounting equation in a clearer and simpler way then my first week of accounting classes, and 62 pages of my accounting book lol sincerely, thank you for this, the formula finally makes sense. Retained earnings was the part I was missing, so I couldn't seem to get the equation in balance, but it makes sense now
I'm currently watching these videos because my small company has asked me to help with the accounting, and it's been tricky until now - you are amazing. Super informative videos, very accessible and incredibly helpful as a series. A thousand times thank you for producing these videos.
Thanks! Happy to help :)
Great video... relatable and makes a lot more sense than many others on youtube. Thank you
Cheers Bella, glad to hear it!
Thank you James ,this is really helpful
it has become crystal clear! thank you!
That is great to hear!
This has cleared up soo much for me. Thanks man.