One thing that accounting and business students should know is that the financial documents they learn of in the earliest of accounting courses, will be used throughout their accounting and business careers.
@valentino3321 Yes I know I went pretty fast. I plan on trying to explain this stuff in a better style soon. Thank you for your ideas and I'm glad you liked it :)
im lost at 9:35. you have said you are going to add the accounts receivable in earnings wk. ending which is $50. The amount of ewtd is $260 + the $50 accounts receivable so it should be $310. but your balance sheet only shows $285? how is that happened?
I think I'm more of a Sensing instead of an Intuiting person. I change my mind about things all of the time. All I require is enough facts. As odd as it may seem, I don't trust my gut reactions all of the time. I think it is because of knowing how easy it is to change a persons opinions
@zippydeeify You are right. Always trust what you see in the presentation. I sometimes miss speak. I'm glad you found it useful. It's just a basic overview
So far I am confused about one thing... On the "Second Week in Business" Slide 7:34 it shows that we spent $240 on mall space and $150 on raw materials... This adds up to $390 but we only have $350 in cash in our asset column so far. Are we using our cash to fund these expenses or are they just a random example? If anyone can help me out with this I thank you in advance.
That was VERY understandable! I am watching this an hour before my test as a quick refresher and it was very easy to follow and made me understand things better. Great video!
9:23 I don’t get what you did with the Prepaid Expenses? Why did you have to split it i to the balance sheet? Did you split it? And why did you specifically put it Cash, AR, Earnings Week Ending?
This video was great! But I have a few questions if you dont mind me asking. At 8:28 you are going over inventory in the assets side of the balance sheet, but I dont understand why raw materials is $0 if we spent $150. I understand how finished goods is $25, just not how raw materials is $0 I also don't understand how/why retained earnings is $150. How did you calculate that or get the number? At 9:30 I begin to get a little lost when you explain the cash. How did you get $465? Other than that, I absolutely LOVED this video! Very helpful and informative. Thank you!
Dear Sir I would like to thank you from the bottom of my heart for your time and effort to produce such a wonderful and useful online material. I have 3 questions:- 1) look @ "Time to expand" slide, can we put at asset column cash 300$ and 50$ finished good, if it's permissible, can i put at income stat. end Invent. 50$ ... 2) 1 slide after .. Confusion strikes on how to extract nos. at income stat. (total available for sale) (end Inven.) 3) What's the maths for (150$)-Retained Earnings ?
I'm back in school getting my MBA and have never taken an accounting class before. Just started Monday and was feeling overwhelmed. Thank you for creating this video! (A decade late, haha)
@ajithlondon I wouldn't think they would be different, but I can't be certain. The only changes would occur in relation to tax code rules in regards to depreciation.
I have a REALLY hard time with this and you did a good job but I wish you could have gone slower in order for me to absorb all the information at once, because it is A LOT of info. I've watched this video a few times and it's started to sink in. I'm taking a finance class and my text book is awful, so this really helps.
This is a wonderful explanation of Financial Statements . I would like to thank you for this great video tutorial. I wish I have these kind of teaching in Accounting . Fantastic video !! Take a bow!!
I will need to understand this. How come the total asset and liabilities is $200. Did you say he had $100 as an initial investment and his uncle lend him $100. I really want this explain for me, please
I agree that you go a bit fast but I think it's a good thing. I'd rather pause and replay parts than sit through explanations that I don't really need. Jumping past slow explanations means you might miss important information.
on the "last development" slide you say you add $50 on eanrings week ending but where do we get this previous week ending earning figure from, because the only one i see is $260 and only thing to add that will result in the same figure is 25 of finished goods from previous table.
Hi. Thank you for posting this. I have a question though. When the business owner sold the celebrity pics to his friend for $50, then retained earning should have increased by only $25, right (acknowledge that in the balance sheet, you only increased it by $25, but verbally, you said $50)? Also, please re-confirm that if the friend did not pay for the celebrity pics, then retained earnings should decrease by $50?
Hello Elfie Weimar. If you need tutoring, consultations, business reports and essays on finance, then never shy from contacting my team of freelance educators. We are able to guide you through different phases of finance world. Help you graduate with knowledge and good grades, guide you through your career and help you in personal finance and/or your firm's finance. Contact us on Topfinancialanalysts.edu@gmail.com and add us on hangouts.
Just wonderful, been searching for "free financial planning tips" for a while now, and I think this has helped. Have you ever come across - Ferapt Freedom Fanboy - (search on google ) ? Ive heard some unbelievable things about it and my colleague got cool success with it.
Was watching this after a tiring day, and near end at 8:56 after partially zoning out, I wondered why there was a small bug on the lower center of my screen. Went to wipe it off.....then soon discovered it wasn't a bug, it was the narrator's mouse pointer..... LOL !
Great video. However, you mentioned two different types of owners - liabilities and owners' equity. Liabilities is not an ownership claim - people the business owes are not owners, they are debtholders.
+Barbara Gudith I know it is late but here it goes. prepaid expenses are classified as assets because they did not "incur" yet. so let's say you have an annual insurance policy which costs $1,200, at the beginning of the year you would classify it as an asset and as each month goes by you would expense $100 to the income statement. hope this helped.
Simple example. Let's say a profit of 1000 dollars doesn't mean your business is doing well. You need to see the bigger picture using Balance Sheet and a 1000 $ profit doesn't mean you've cash of 1000 $ with you. That's where cash flows come in. You can't sustain if you're dealing with negative cash flows.
@vhsonacomeback That's pretty much all I've covered on financials. I have a video on how to invest using what is called covarience analysis. I quite because my research tools stopped working in 2006. Then everything blew up. I was more like an analyst than a broker. When I decided I could no longer provide good advice I got out. That is the very short answer. I wish you the best :)
@derekbanas Why would you ever stop being one? Also, I haven't watched fully through the videos yet, I'm signing up for the exams when I come back from army officer candidate school. Are there any other videos that you recommend that I watch? Study tips would be greatly appreciated.
I understand that all the math should be common sense but when you explain the process and leave out one detail, it could frustrate someone who doesn't understand. example: What are the goods he's selling so I can understand caricature. Since $50 in inventory produces 50 caricatures, that would mean the cost of goods sold would be $40 because he sold 40 units. Just a thought. Great job BTW!!!!
This subject Accounting just like Computer Science (the computer Programming) can drive a person absolutely insane.After having watched so many Accounting teachers & students you cannot master this subject without super command in the very rudimentary basic journals ( you can't succeed in Accounting without mastery in journals ( similar alphabet in English ) to the utterly complicated financial ratios . The derivatives of financial statements the financial ratios can make your brain burst .I thought this subject wasn't as boring as Computer Programming I was wrong this was even more boring shit. The terminology in Accounting is also really complex and often makes a student as well as teachers( I had couple of teachers ) confused. Finally , with tremendous perseverance , basic interest in the subject ,rigorous practice you can become a chartered accountant .
Capital is the total money put into a business at the start. Owners Equity is the asset value after liabilities have been paid
9 years after this video was uploaded and is still amazing the way you explained it. Thanks!!
Thank you for the nice compliment :)
One thing that accounting and business students should know is that the financial documents they learn of in the earliest of accounting courses, will be used throughout their accounting and business careers.
@gooseCha Thank you for taking the time to show your appreciation. Feel free to pass along any questions and I'll do my best to answer them
@valentino3321 Yes I know I went pretty fast. I plan on trying to explain this stuff in a better style soon. Thank you for your ideas and I'm glad you liked it :)
im lost at 9:35. you have said you are going to add the accounts receivable in earnings wk. ending which is $50. The amount of ewtd is $260 + the $50 accounts receivable so it should be $310. but your balance sheet only shows $285? how is that happened?
I think I'm more of a Sensing instead of an Intuiting person. I change my mind about things all of the time. All I require is enough facts. As odd as it may seem, I don't trust my gut reactions all of the time. I think it is because of knowing how easy it is to change a persons opinions
I have a test tomorrow and this explanation really helped me understand everything about accountings. Thank you so much!
I wish you the best of luck on your test :)
Thank you so so much!
@zippydeeify You are right. Always trust what you see in the presentation. I sometimes miss speak. I'm glad you found it useful. It's just a basic overview
Very helpful and simple explanation of the financial statements
I'm very happy to have been able to help :)
@almichel888 You're welcome. I'm glad you found it useful
So far I am confused about one thing... On the "Second Week in Business" Slide 7:34 it shows that we spent $240 on mall space and $150 on raw materials... This adds up to $390 but we only have $350 in cash in our asset column so far. Are we using our cash to fund these expenses or are they just a random example? If anyone can help me out with this I thank you in advance.
That was VERY understandable! I am watching this an hour before my test as a quick refresher and it was very easy to follow and made me understand things better. Great video!
That's great ! I'm happy to be of help :)
I couldnt leave this video without saying: Thank you very much!
You're very welcome :) Thank you for taking the time to tell me it helped
9:23
I don’t get what you did with the Prepaid Expenses? Why did you have to split it i to the balance sheet? Did you split it? And why did you specifically put it Cash, AR, Earnings Week Ending?
This video was great! But I have a few questions if you dont mind me asking.
At 8:28 you are going over inventory in the assets side of the balance sheet, but I dont understand why raw materials is $0 if we spent $150. I understand how finished goods is $25, just not how raw materials is $0
I also don't understand how/why retained earnings is $150. How did you calculate that or get the number?
At 9:30 I begin to get a little lost when you explain the cash. How did you get $465?
Other than that, I absolutely LOVED this video! Very helpful and informative. Thank you!
Dear Sir
I would like to thank you from the bottom of my heart for your time and effort to produce such a wonderful and useful online material. I have 3 questions:-
1) look @ "Time to expand" slide, can we put at asset column cash 300$ and 50$ finished good, if it's permissible, can i put at income stat. end Invent. 50$ ...
2) 1 slide after .. Confusion strikes on how to extract nos. at income stat. (total available for sale) (end Inven.)
3) What's the maths for (150$)-Retained Earnings ?
Thank you - you explained about balance sheets in a helpful and clear way.
Thank you very much :)
I'm back in school getting my MBA and have never taken an accounting class before. Just started Monday and was feeling overwhelmed. Thank you for creating this video! (A decade late, haha)
I'm happy it helped :) I wish you the best with college
We are barely taught anything in school. Derek rocks.
Thank you :) That was the goal. I'm glad you liked it
@ajithlondon I wouldn't think they would be different, but I can't be certain. The only changes would occur in relation to tax code rules in regards to depreciation.
Thank you so much! It's wayyyyyy more clear than how my professor teached us.
I have a REALLY hard time with this and you did a good job but I wish you could have gone slower in order for me to absorb all the information at once, because it is A LOT of info. I've watched this video a few times and it's started to sink in. I'm taking a finance class and my text book is awful, so this really helps.
Thank you :) I'm glad if it helped. Sorry about the speed. I have tried to get better at making the videos over the years.
Derek Banas great video excited to see part 2
This is a wonderful explanation of Financial Statements . I would like to thank you for this great video tutorial. I wish I have these kind of teaching in Accounting .
Fantastic video !! Take a bow!!
my knowledge is quite rusty but i managed to follow by the means of some pause/rew/play :) but this was quite a handy recap, kudos!!
Thank you :) I'm glad you liked it
Thank you so much. I'm going to use this so much while studying for the CFA exams.
Thank you so much for this explanation! I find it more useful than my university lectures
Thank you :) Happy I could help
@vhsonacomeback You're welcome. I used to be a CFA.
oh my gosh. YOu cover java you cover c you cover financial statements . Respect! You helped me out a lot
Thank you :) I'm happy the videos helped
Wonderfully produced. Thank you.
+me still me Thank you very much :) Your welcome
I will need to understand this. How come the total asset and liabilities is $200. Did you say he had $100 as an initial investment and his uncle lend him $100. I really want this explain for me, please
Thank you very much, I am not an accountant and I am understanding what you are talking about. :)
Your videos are epic! You're videos explain the most important things, in a short amount of time. Very convenient! :)
Thank you very much :) I do my best to cover everything as quickly as possible. I'm glad you like them
I agree that you go a bit fast but I think it's a good thing. I'd rather pause and replay parts than sit through explanations that I don't really need. Jumping past slow explanations means you might miss important information.
Thank you :) I do my best to make original content
on the "last development" slide you say you add $50 on eanrings week ending but where do we get this previous week ending earning figure from, because the only one i see is $260 and only thing to add that will result in the same figure is 25 of finished goods from previous table.
Thank you. I will be back. Just beginning my studies in
Bookkeeping.
i didn't get it?? 9:33 how did u adjust the asets part? could u be more clear pls specially abt the cash and account receiveable
..
I'm definitely a recipe follower. If I'm not able to follow my personal plan I go nuts.
Hi, I'm confused about "Earnings Week Ending". Why is that equal to the profit from the sales and why is that a liability?
Hi. Thank you for posting this. I have a question though. When the business owner sold the celebrity pics to his friend for $50, then retained earning should have increased by only $25, right (acknowledge that in the balance sheet, you only increased it by $25, but verbally, you said $50)? Also, please re-confirm that if the friend did not pay for the celebrity pics, then retained earnings should decrease by $50?
*Can anyone recommend research paper writing company?*
Sorry, but I don't know any
Ordered my essay at *essay.itg0.all-about.in*. *I have been pleased with the results.*
Hello Elfie Weimar. If you need tutoring, consultations, business reports and essays on finance, then never shy from contacting my team of freelance educators. We are able to guide you through different phases of finance world. Help you graduate with knowledge and good grades, guide you through your career and help you in personal finance and/or your firm's finance. Contact us on Topfinancialanalysts.edu@gmail.com and add us on hangouts.
Just wonderful, been searching for "free financial planning tips" for a while now, and I think this has helped. Have you ever come across - Ferapt Freedom Fanboy - (search on google ) ? Ive heard some unbelievable things about it and my colleague got cool success with it.
Was watching this after a tiring day, and near end at 8:56 after partially zoning out, I wondered why there was a small bug on the lower center of my screen. Went to wipe it off.....then soon discovered it wasn't a bug, it was the narrator's mouse pointer..... LOL !
Great video. However, you mentioned two different types of owners - liabilities and owners' equity. Liabilities is not an ownership claim - people the business owes are not owners, they are debtholders.
What is unconsolidated financial statement?
2:30 Why separate the "Sales" from "Cost Of Goods Sold" ?
Are Sales and Goods sold not the same?
very well explained, you're a life saver!
Thank you :)
Great job thank you. I have a question, why are you putting the earnings in the same column as liabilities? why net income is a liability?
Thank you this was very helpful and informative 👍👍
I'm happy it helped :)
Where are practice questions available?
Please explain why you placed Prepaid Expenses in or under Inventory.
+Barbara Gudith I know it is late but here it goes.
prepaid expenses are classified as assets because they did not "incur" yet. so let's say you have an annual insurance policy which costs $1,200, at the beginning of the year you would classify it as an asset and as each month goes by you would expense $100 to the income statement.
hope this helped.
Only thing I would suggest is add a little window of the previous screen so someone can follow easier but good video
I seriously expected a financial statement to be a sentence or two.. smh.. thank God I'm learning this now before my business opens up
I'm happy I could help :) I wish you the best of luck with your business as a fellow business owner.
I got your answer and also following your website now I have one more question.
Why Income statement don’t tell whole story ?
Simple example. Let's say a profit of 1000 dollars doesn't mean your business is doing well. You need to see the bigger picture using Balance Sheet and a 1000 $ profit doesn't mean you've cash of 1000 $ with you. That's where cash flows come in. You can't sustain if you're dealing with negative cash flows.
Any chance this is available as a powerpoint or a printable?
+Kor Christine Sorry, but I don't have the slides. Feel free to screen capture them though
Does this include the cashflow statement, that's all I care about
Owners equity the same as saying capital?
You're very welcome :)
Great explanation, especially since I'm about to take acct 556 MBA
Thank you :) I'm happy it helped
Thank you. I really learned something from the video. I anticipate some animation added can be more helpful.
@vhsonacomeback That's pretty much all I've covered on financials. I have a video on how to invest using what is called covarience analysis. I quite because my research tools stopped working in 2006. Then everything blew up. I was more like an analyst than a broker. When I decided I could no longer provide good advice I got out. That is the very short answer. I wish you the best :)
Which software did you use to make this video?
Camtasia 2 and iMovie
Sir, are these rules different to the accounting standards used in the United Kingdom and other Commonwealth Countries?
What does EWTD stand for? I understand the EW part but not the TD one. Thanks.
To date
Amazing, thank you very much for posting this very useful stuff.
sir tell little louder please i love it
Just a comment. You seemed rushed to me and it was difficult for a novice like me to keep up. Just trying to be helpful. Thanks
Sorry about the speed. I tend to go to fast some times
Keith Clark youtube has provided you the option to manipulate the speed of presentation, the dude is simply super efficient :) good job
Amazing video
@derekbanas Why would you ever stop being one? Also, I haven't watched fully through the videos yet, I'm signing up for the exams when I come back from army officer candidate school. Are there any other videos that you recommend that I watch? Study tips would be greatly appreciated.
Amazing video! Thanks
Thank you :)
I understand that all the math should be common sense but when you explain the process and leave out one detail, it could frustrate someone who doesn't understand. example: What are the goods he's selling so I can understand caricature. Since $50 in inventory produces 50 caricatures, that would mean the cost of goods sold would be $40 because he sold 40 units.
Just a thought.
Great job BTW!!!!
Thanks for this video. Very useful.
i can not understand why something that COSTS money would go into assets and not liabilities.
Thank you :)
Thanks so much for this....very helpful
Thank you so much for this video, it helps me a lot......But please make it a little bit slow when u explain thanks again.
I'm glad it helped :) Sorry about the speed
@@derekbanas Sir. So much thank you for this, it is really a big help for me. God bless u!
The making and executing personal plan comes from Te
All xxTJs love to make and follow personal plans. Including me.
Indonesia.
I told this girl what a balance sheet and she immediately took her clothes off after 😎
haha😂
Thanks great video
Happy you like it 😁
@derekbanas Thanks again! Thanks for your generosity in sharing your knowledge. =)
derek i want to inrol how
thankyou for this video .
I'm happy it helped :)
Had to watch a few times to grasp the info. Please slow down, it's a lot of info to take in at once.
download an example sheet here:
delicateit.com/docs
This subject Accounting just like Computer Science (the computer Programming) can drive a person absolutely insane.After having watched so many Accounting teachers & students you cannot master this subject without super command in the very rudimentary basic journals ( you can't succeed in Accounting without mastery in journals ( similar alphabet in English ) to the utterly complicated financial ratios . The derivatives of financial statements the financial ratios can make your brain burst .I thought this subject wasn't as boring as Computer Programming I was wrong this was even more boring shit. The terminology in Accounting is also really complex and often makes a student as well as teachers( I had couple of teachers ) confused. Finally , with tremendous perseverance , basic interest in the subject ,rigorous practice you can become a chartered accountant .
LOL, I left accounting for coding.
Hey
You
great video but please sllloooowwww down!
Yeah I agree
You can use settings to change the speed
lower the playback speed to 0.5x its sounds like his had a stroke
but makes it easier to follow what he's saying.
Thank you soo much.
Thank you
I'm happy it helped :)
very good
Thank you :)
Thaaaaank you!!
Happy I could help :)
Tobby is that you ?
No this is not Tobby :)
Derek Banas sorry. But great material there really. Thanks for posting them
Can watch this as well: th-cam.com/video/hSzd56rSBpg/w-d-xo.html
don't understand it
Hi why are you talking to yourself?
TH-cam messed up the comment system. I was answering peoples questions, but they broke them apart because of a bug I'm guessing
You're very welcome :)