You are most welcome. Please subscribe and share. If you want to access more resources, check my website: ✔farhatlectures.com/ ✔Instagram: @farhatlectures ✔ Linkedin: www.linkedin.com/in/professorfarhat/ ✔Facebook:@accountinglectures ✔Twitter: @farhatlectures 🎤Email: Mansour.farhat@gmail.com
Thanks alot profesor farhat ur videos make me understand accounting very well but about notes payable fasb says:Paragraph 230-10-45-17 All of the following are cash outflows for operating activities: Cash payments to acquire materials for manufacture or goods for resale, including principal payments on accounts and both short- and long-term notes payable to suppliers for those materials or goods, The term goods includes certain loans and other debt and equity instruments of other entities that are acquired specifically for resale, as discussed in paragraph 230-10-45-21.as i understand notes payable not finacing activity but its operating .
Also at the beginning of the video he has the first statement (1) as an inventory cost, than at 12:45 he changes it to a financial cost. Which one is it?
Thank you for this informative video. I had a small query, net income would usually be credited on the T-account right? As it is an income? Why is it debited in this case?
Accumulated Depreciation for 2016 (beginning A/D) was 86,000 Credit normal balance; a plant asset was sold and fully depreciated so we have to Debit Accumulated depreciation for 20,000; the ending Accumulated depreciation (2017) is 80,000 so in order to get to the ending A/D balance, the 14,000 is really a plug to get the t-account to balance out to the ending number of 80,000; 86,000 cr less 20,000 dr + 14,000 cr = ending balance of 80,000 cr
Final question, If your selling more on account why would your cash flow go down..? If your selling more wouldn’t your cash flow increase because your making more money?
if you're selling on account, cash is never involved. its AR and sales most likely. So, if your AR increases, your sales do increase which inturn increase net income but that increase is not because of cash. Therefore, you have to remove that increase. The whole point is to adjust net income which is on an accrual basis to a cash basis version of net income
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Thank you for all your videos! Your channel is one of my favorites, it helped me a lot. Continue to be a blessing to all students like me. 💚
You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
✔farhatlectures.com/
✔Instagram: @farhatlectures
✔ Linkedin: www.linkedin.com/in/professorfarhat/
✔Facebook:@accountinglectures
✔Twitter: @farhatlectures
🎤Email: Mansour.farhat@gmail.com
Thanks alot profesor farhat ur videos make me understand accounting very well but about notes payable fasb says:Paragraph 230-10-45-17
All of the following are cash outflows for operating activities:
Cash payments to acquire materials for manufacture or goods for
resale, including principal payments on accounts and both short- and
long-term notes payable to suppliers for those materials or goods, The
term goods includes certain loans and other debt and equity instruments
of other entities that are acquired specifically for resale, as discussed in
paragraph 230-10-45-21.as i understand notes payable not finacing activity but its operating .
Please connect with me: linktr.ee/farhatlectures
Excellent, gratitude
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Also at the beginning of the video he has the first statement (1) as an inventory cost, than at 12:45 he changes it to a financial cost. Which one is it?
Your videos are great! would be better to create a playlist of only Cash Flow Statement videos since there are so many I'd like to watch all of them!
You can browse my material by course here: farhatlectures.pathwright.com/library/?category=Intermediate+Accounting
Hi. Are you able to provide any coaching services?
Sure. Contact me: Mansour.farhat@gmail.com
How did you get sale of common stock 35,000 shouldn't it b 25,000?
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Thank you for this informative video.
I had a small query, net income would usually be credited on the T-account right?
As it is an income? Why is it debited in this case?
Same for accumulated depreciation. If the amount was negative it should be in the debit section since normal balance of Accum. depr. in credit.
Can anyone explain when he’s doing the T-Account for accumulated depreciation how he got $14,000 for the deprecation expense?
Accumulated Depreciation for 2016 (beginning A/D) was 86,000 Credit normal balance; a plant asset was sold and fully depreciated so we have to Debit Accumulated depreciation for 20,000; the ending Accumulated depreciation (2017) is 80,000 so in order to get to the ending A/D balance, the 14,000 is really a plug to get the t-account to balance out to the ending number of 80,000; 86,000 cr less 20,000 dr + 14,000 cr = ending balance of 80,000 cr
@@williamswag5725 thank you William!
Final question, If your selling more on account why would your cash flow go down..? If your selling more wouldn’t your cash flow increase because your making more money?
if you're selling on account, cash is never involved. its AR and sales most likely. So, if your AR increases, your sales do increase which inturn increase net income but that increase is not because of cash. Therefore, you have to remove that increase. The whole point is to adjust net income which is on an accrual basis to a cash basis version of net income