What Does Equity ACTUALLY Mean?
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- เผยแพร่เมื่อ 13 พ.ค. 2024
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Discover what Equity means in Accounting. 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 find the definition of Equity in Accounting. You'll also learn how Equity is made up of Capital Contributions, Retained Earnings and Withdrawals. And as if that wasn't enough, you'll also find the link between the Income Statement and the Balance Sheet in the context of the expanded Accounting Equation.
⏱️TIMESTAMPS
00:00 - Intro
01:35 - Equity definition #1
02:37 - Equity definition #2
04:37 - How to structure your business?
04:44 - Sole Proprietor
04:50 - Partnership
04:43 - Corporation
05:29 - Capital Contributions Explained
07:27 - Retained Earnings Explained
08:52 - Withdrawals Explained
09:39 - How the Expanded Accounting Equation works
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#accounting #accountingbasics #accountingstuff
I hate accounting, I like accounting when explained like this... wow.
Agree! That's why I tried Course this then next BSIT
I love this man, he taught me in 10 minutes what I couldn’t learn in several lectures! Thanks James, god bless you
No problem Marie, happy to hear that it's making sense
So true
Hallelujah!
Amen
For real. I've been researching this all day, and nowhere else was it broken down this clearly.
''let me know in the comments if you want to hear more about it''
-ARE YOU KINNDING? I WANT TO HEAR MORE ABOUT EVERYTHING! YOU ARE THE BEST EVER! Please dont ever stop teaching us what you know! these videos are so good! never thought i would enjoy accounting this much! Thank you!!!!
Haha, thanks for the kind words!! Glad to hear that you are enjoying the videos. I don't plan on stopping any time soon!
Ditto!
Same! It's so concise and clear and fun!!!
ikr?
lmao
You are much better than my accounting teacher.
haha, i am an accounting teacher; and he is better than me
samee
I wish these videos were around during my first semester of college. You do a much better job explaining these topics than my fundamentals professor did. Well done!...
Cheers Tim!
Fortunately i am watching this in my first semester!! 😆
I slacked off during high school. This is one of the main reasons, why I can't cope up with my college accounting lectures and tests. I haven't got the basics of accounting down hence the crisis. Then one day I stumbled upon this channel and mark my words, this is one of the best things that ever happened to me in my entire life.
Sorry to hear that you've been having a tough time at college. I hope it all gets easier for you. I'm here to help, so if you have any questions please let me know
I completely fucked up my life too, now we'll never be able to catch up.
Same, took me a decade to finally understand, it's SO EYE OPENING
@@waterfoker8558it’s weird aye, how we just all of a sudden… realise
I have a masters degree and you helped me learn this better than my teachers did
I’ve always had trouble with equity, I usually just forget.
This video has made me realize how easy is to understand equity. I love it.
Great to hear that it's making sense for you!
The best part of this videos was the fact that you and your brother are involved in removing plastic pollution! Good Stuff
This is probably the best video on financial literacy in all youtube. It makes things so clear ! Thanks a lot for your great work.
Cheers Yair, glad you enjoyed it!
Teaching is an art, and that art is in you. Mr. Artist. A huge support and respect.
You're an incredible teacher and filmmaker 😭 so clear and understandable and engaging
Thanks that is kind of you to say!
Now you are what I call a great teacher!! Things are ever so clear now, even the text books don't explain stuff this way...thank God for you James!!!!!
Thanks you are too kind! Happy to hear things are clear for you
You can see all the effort that he puts into his videos!! It's so neat and organized!! Thank you James! :)
I try :)
You are literally the best educator ever. I can literally just watch your videos to study.
Thanks for your kind words! All the best with your studies
Amazing how confusing it can be until someone explains it so clearly and simply as you do!
Your videos are invaluable to my learning. The production quality is superb; thank you for your hard work!
you should also start a course(maybe in another channel) on how to make and edit videos like an expert! your videos are truly amazing and you are really talented in it
Thanks for your suggestion!
You simplified everything and now I understand accounting after so many years
I also thought from our seniors that accounting is very tough subject but after watching you vedio😊 it is like 2 mins maggie love you and your explanations from🇮🇳🇮🇳🇮🇳
This has to be the best explanation of equity on the Internet. Thank you, James.
Cheers mate!
Man, you're simply awesome; I like how you divide the content into short simple videos of 11 min (Y) This helps a lot; making it more digestible... Keep your awesomeness going and hope you get lots of subscribers and viewers; don't give up
Hey Mahmoud, thanks for your feedback. It's motivating to know the videos are making a difference. I don't plan on stopping anytime soon.
currently binge watching the entire series ahead of my accounting exam next week haha. thanks for the help!
Over 30 years since I did accounting as part of my degree. Wish you'd have been about then! I finally understand it. Brilliant!
Great to hear it's clicking for you
these accounting videos you make are better than
all the others put together and trust me theirs a lot.
Thanks for your kind words!
I've started studying for my level 4 ATI exams and these videos are worth their weight in diamonds let alone in gold! Cheers for making these, you're a legend 😁
Good luck with your studies :)
I took giant notess.. thank you so much.. you are such a great teacher.. i was so confused between capital and equity..best channel
Dude your editing and way you come off to explain these basic topics are on point. I hope your content remains to be this high quality as you continue to make these videos. It's the small things that make it more enjoyable to watch and listen
Thanks mate, that is kind of you to say! Some of the small things take the longest time to edit but I'm glad to hear that you're enjoying them
I have an accounting exam tomorrow morning and your videos have helped me so much more than my teacher has for this entire year! Thank you so so much ^_^
Good luck! Hope you smash it!!
I have one Monday. The video's are helping
For those who still don't get the accounting equation
Think of Assets as 20
Liabilities 10
Equity 10
You just need to balance them to 20=20 no matter what you do. This is all there is to it, you only need to understand what accounts fall in each category.
is it bad to have more assets then liabilities and equity? Is it does go over, what happens?
@@donnychau4 You will never have more assets because assets = liabilities + equity
Well thanks for simplifying it. Still not sure what equity means but I’m close to figuring it out.
@@campbellblk7484 equity is the shareholders’ claims on an entity’s assets
@@campbellblk7484(Equity is made up of Retained Earnings (profits) and Capital contributions from owners (aka money owners put into their business. And there is different words for capitbal contributions depending on the business type. Owners equity, Partner contributions, Shareholders Equity). So Assets = Liabilities + Equity (Capital Contributions & Retained Earnings)
And equity is considered "what you owe to the owners" because of the fact that the owners are the ones making investments into the business/company so that it can become profitable in the future.
And Retained earnings is labeled as "what you owe to the owners" because since the owners are the ones taking their own money and investing it into the business, some of the retained earnings (profits) need to be paid to them. Because thats basically what investing is. You put money up to help someone, and then you get profit back when they make profit. So thats why retained earnings is considered "what you owe to owners"
Thank you. The video explained "equity" so much better than an accounting professor I had back in college. This provided a clear picture! Pressed the like button.
That was an absolutely wonderful conclusion, you tied everything together so well. Marvelously done, my man.
I really think your videos are useful and helpful! Keep making more :) SO GOOD
Thanks Antoine, I have many more planned for the future!
i wanna know more about the entities types and what are the differences
I really have no idea how many times I repeat watching the same video again and again for more clear memorization. I don't know how to thank you. Am waiting for your upcoming videos. You are always best in teaching. God bless you.😇
These are the best accounting videos I have ever watched !! Very informative and helpful
Consider yourself my study partner
Love from Africa✌
My teachers never taught about these😂💗
Love your channel. You take rather complex concepts and break them down into easy to understand ways.
Can't seem to get enough...one video ends..I want another of James....
if you become my accounting lecturer,I think I can get always 4flat with A+ grade😂
Accounting stuff: *mentions Vancouver*
Me: *pikachu meme*
Edit: the talent in this city constantly amazes me
Are you in Vancouver too?? I love it here!
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I'm an accounting instructor and I've watched nearly all of the videos. This is probably the best one, really marvelous.
Excellent way of putting many hard-to-grab financial terms into perspective. Thank you!
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He appears to be well-educated and well-read. I ran a Google search on his name and came across his website; thank you for sharing.
3:16, great explanation of why the word "equity" is so connected with "ownership". I very much appreciate your work!
Cheers Sebastian!
this video saved me sooo much time. I am so grateful. Thank you for your work!
Effective teaching is a gift, many needed this back in my days. In Namibia, accounting is done from the 8th grade to 12th grade (junior and senior high school). Many kids didn't like it because the teachers didn't explain as well as it was explained on this video.
WGU please take notes!!!! This guy's youtube channel is better than your entire Financial Accounting curriculum.
Man, you break the subject down so well and have such effective slides. Thank you! :)
Cheers!
This is best video on equity and balance sheet. For a somewhat novice like me, you are a saviour. I learned a lot more over a short time span in comparison to hours I spent in the previous days trying to get my head around it. Also, this will be the only video I need to rewatch whenever I need a quick recap.
Thanks Don, I'm glad to hear that you're finding the vid useful!
These videos show how much he knows that he is able to explain it so well. Ill continue watching all his videos
Thanks Oscar, hope you find them useful :)
Just started financial accounting this semester and will have management accounting too next month and your videos are lifesavers. I am really enjoying accounting thanks to you, as I never thought I could wrap my head around debits and credits. Thanks a lot, James and keep up with the awesome work!
Thanks, I am happy to help! All the best with your financial accounting course. Hope you crush it!!
your entire channel has saved me, if I ever become something in the world of finance, so much of it will be owed to you fr
thank you so so much for this! truly feel like i understand so much better now! i like how you break down the definitions bit by bit, and then piece it all together again by looking at the whole picture :) thanks and keep making these vids!
No worries, you're very welcome. It sounds like Equity is clicking for you which is great to hear!
Just wow you nearly cleared up all my questions. Now it's just a matter of remembering the vocabulary and whether it goes into liabilities, assets or equities. Thank you.
Great to hear it's making sense :)
You are truly a gifted teacher and storyteller. Thanks James for sharing your expertise.
No worries Sherree!
A very supreme coverage of the concept. Thanks for existing.
You are the best teacher ever 🙏🙏🙏 even I have worked in finance for many years but struggling to explain accounting in plain words!
You did such a great job simplifying these terms and because of that, you helped me a lot! Thank you, James!
The best explanation of equity I`ve seen here on youtube, thank you! I`m applying for a support analyst position in a fintech and I`ve been learning about equity and other terminologies related to the business this week, I´ll watch all your videos related to this topic now, you saved me! XD
This channel is great! I am currently taking accounting at uni and have a test in 2 hours... I'm excited to see your channel progress at the same time as my class!
Thanks Taylar, and good luck for your test!!
You are an amazing teacher! I was having so much trouble and I greatly appreciate your time you have put into these videos!
Thanks Rosa! Sorry to hear that you've been have a rough time with accounting. Hope it's beginning to click for you
Thanks a lot James for the simple easy illustration which you did a great effort in it . 🙏
Why I didn't find your channel back in uni years when I was so struggling with Accounting????? Why I paid buttloads of money to a university that couldn't explain EQUITY clearly in 10 mins and instead, took me almost 3 years??????? lol All I want to say is THANK YOU JAMES!!! Your explanation is the clearest I have ever seen in my life!!
Thanks, I'm glad to hear that you found it useful! All the best :)
Not only are you an amazing teacher but the production quality of your videos is incredible, thank you so much for making this content. I'm paying £9,000 for uni but I'm watching your videos instead of my pre recorded lectures because they're so much better.
Cheers Caleb!!
Wow why wasn’t I taught like this? It seems so captivating and fun. Would love to see more and more topics of accounting. Thanks james!
If you have no clue what passion all about, watch these series, it is clearly show the passion that James have to spread knowledge to all humans.
Studying for a test and this channel breaks these accounting terms THE BEST. Thank you so much!
Good luck in your test!
Exponentially better than my teacher's explanation. Thank you so much.
Thanks! All the best
Proud sons of mother. Both brothers are serving for mankind. Such a blessed family! 💝
This was awesome! Came here to get a better understanding of equity as we just went from sole proprietor to partnership. What I got out of it was a way better general understanding on all the elements! Thanks again!
No worries, glad it's making sense :)
Thank you. You make understanding accounting so easy!!
I'm doing a career change and I forgot all my accounting stuff!! Your videos are one of the easiest to follow honestly. Keep posting!!
Thanks Alodia, I'm working on a bunch more at the moment
Watched 4 of your videos already and so far I can say, "You are amazing!!!" Thank you for this video
Cheers Aira! I'm happy you're finding them helpful :)
This video is the best explanation of equity EVER!!! Very well done! Thank you!
Cheers!
You are the best, when it comes to proper explanations!!!
Thanks! Glad you found it useful :)
This is by far the best explaination So far, it will help me teach my students
You always save me before any interviews thanks so much ❤️
My bachelor degree has nothing to do with accounting but now that i am studying for a masters degree i need a part of accounting so i am really grateful for your channel. I never had accounting lectures yet i was able to understand everything. You are amazing !!
Great to hear you're finding these useful :)
I'm so glad that I found this page. You have really thorough information. Thank you.
No worries, hope the videos are helping you out!
Loved how you explained EQUITY in such an articulate way!
Thank you so much, I kept reading and watching vids about equity and could not understand it. You simplified it perfectly
No problem Andres! Hope it's making sense for you
Wow this is amazing! You explained it so well and the images help too! Love it! You got a new subscriber!
What a brilliant teacher! Thanks for bringing light to this topic.
Thanks Lousie, hope it helps!
Thank you so much for the one by one explanation. The equity is the hardest part of my job. Thanks again for your help!!!!
No problem!
I like the content itself and the way you edit your video. Super helpful! Thank you so much for putting effort into this.
Thanks Eileen, glad you enjoyed it :)
You are the best. Thanks for sharing your gift of explaining difficulty stuff in a simpler and understandable way with us. Much appreciated.
Just amazing video. It clear all the concepts related to equity
Glad it was helpful!
Thank you again mate. You are an awosome human being just for apploading these videos:). And you are probably the first TH-camr that genarious enough to reply ALL THE COMMENTS.
Cheers Emre! Haha, it's no problem. I love to chat with my subscribers!
A vancouver local loves to see people who are learning in school/uni (Such as I) get actual help from such an amazing teacher such as yourself.
Another Vancouverite! Hope you're keeping safe in all of this smog we're getting
@@AccountingStuff Yeah! Tough stuff up here. Getting better starting today though :)
@@brandongiroux7448 I hope so! Can't wait to get out and about again
You are a genius man! I had been reading and re-reading 25 pages of my basic accounting chapter! Damn, you made it so clear in 1 video! Thank you tons!
No worries, glad to hear it's making sense!
Wow just wow. U r a natural. I’ve been out of touch of accounting. Your videos are helping me learn again even better.
just in my first year of finaces and this channel is absolutely life saving!!! Thanks for your amazing videos
No problem, all the best with your studies!
Mind blown on how simply this was explained and easy to understand compared to the last 50 hr long videos that left me even MORE confused 😊😂....thanks brother
No problem, glad to hear that the video helped!
You do such a great job of giving understanding
this really help and saved me a time in learning this topic. thank you !
Thanks for the video. Your 11 min video just cleared up a concept I struggled with for a long time. THanks!
No worries Gregory! Glad it's making sense
You are awesome! I was reading the comments down below and I agree with everyone. The way you explain these concepts makes them much easier to understand. I love how you present the material too. You're funny and you keep me interested in the topics. Please please please do more videos. I see there is a lot that you have not yet covered!!! Thank you!
Thanks Natalie, I'm so glad to hear that you're enjoying the videos. Working on many more as we speak. All the best!
Im legit just learning about stocks and fundamentals and knows nothing about accounting but i acctually understood it, youre the best teacher man
Cheers, I'm happy to help :)