I have Accounting courses at university... Phew, not so easy for me. Most of it is logical, but I get confused with provisions for bad debts and all that stuff. I guess I just have to study more.
With English skills like this I hope it doesn't transfer onto the notes of financial statements. Also, a Chartered Accountant is a professional designation which requires competency. If you don't have that competency than your university failed you. I hope I can help you out anyway I can to fill in the gaps.
As a 4th year accounting student doing consolidated financial statements and removing inter-company transactions, this equation sort of falls out of the total picture. Cash flow hedges is a nightmare I am tackling at the moment too.
Accounting just doesn't involve math. Every transaction has its own Standards of Financial Reporting Summaries that lay-out lengthy rules and guidelines to account for a transaction. Accounting textbooks as a result have more text and memorization than a standard history textbook. For example, a capital lease requires many tests: its useful life versus lease term, the present value of future cash flows must be 90% of fair value of leased asset, etc.
I dont get it...I thought it was assets=libialities = capital.....sorry i just started principles of accounting and i wanted to get foundation before progressing
Soon IFRS and US GAAP will be merging....soon we will need more forensics accounting more then ever just because of IFRS rules that promotes accounting principles instead of adhering to specific rules like we do in the states.
Best Example IFRS - R&D- research is expensed whereas Development is capitalized and amortized at a rate in which the company sees fit till when the project it completed
US GAAP - Expense it all...no need overstating the financials to make things look good.
Hey, I'm in Accounting now. :) We are in corporate accounting right now, but I pretty much know what this is guy is talking about because we learned about sole-proprietorships. :)
Look out world, there is a new Accountant among you :)
btw to balance out the equation u need to know what accounts increase by debit or credit - it is as simple as (assets, expenses and dividends = balance increases for debit) all others increase with debit - this is how the equation balances.
so for the above #2 transaction
Jan 2 Prepaid rent expense 4800 Cash 4800 (prepaid rent with Cash)
and all you need to do figure out where each acount falls - under liabilitities.... etc. then by simply always making sure that Assets = liabilities and Stockholders equity.. once you have figured out... wala! uve started your accounting, and its quite easy and worth it to learn
not at all. just remember the accounting equation ASSETS = LIABILITIES + CAPITAL. you can also use 2=1+1... therefore, whatever you add into your asset (left side or what we call debit), you should have a corresponding amount on the right side or what we call credit.
as long as you can remember the equation, you can never go wrong. also remember where accounts i.e. assets, liabilities, & capital normally sits. assets is always debit - so if you place the asset on credit, it means you're reducing your asset. liabilities and capital sit normally on the right or credit. therefore if you place them on the left or debit, you're reducing their amounts.
ty
makeiteasyable 3 months ago
nice! thanks sa video!
adelle0001 3 months ago
looks and sounds very simple but a little explaination on the spreadsheet would be nice, im new to this. thanks anyway
sawsosis 3 years ago
I have Accounting courses at university... Phew, not so easy for me. Most of it is logical, but I get confused with provisions for bad debts and all that stuff. I guess I just have to study more.
HedgeFund89 3 years ago
Hi Mike, that isn't very clear but the double entry is:
DR Office Supplies $2000 (Asset)
CR Trade Payables/Creditors $2000 (Liability).
In practice those office supplies would be expensed.
Hope that helps anyway best of luck
kidoseven 3 years ago
With English skills like this I hope it doesn't transfer onto the notes of financial statements. Also, a Chartered Accountant is a professional designation which requires competency. If you don't have that competency than your university failed you. I hope I can help you out anyway I can to fill in the gaps.
LiftedX 3 years ago
As a 4th year accounting student doing consolidated financial statements and removing inter-company transactions, this equation sort of falls out of the total picture. Cash flow hedges is a nightmare I am tackling at the moment too.
LiftedX 3 years ago
aka
Assets-liabilities=capital.
BUT GUYS.
theres a TON more stuff to this. this is just the first little equation.
if you're going to take a uni degree in it, it will be so much more complex.
im only taking it as an AS Level now, and theres LOADS. from reconialiations to depreciation. you have to know the ins + the outs of the system.
but if you want to do it, consult some teachers.
hayzhayzhayz 3 years ago
w00t, future career. Assets=Liabilities+Owner's Equity. This isn't hard guys, I am taking accounting in HS and at a local CC, very simple.
supercork 3 years ago
Accounting just doesn't involve math. Every transaction has its own Standards of Financial Reporting Summaries that lay-out lengthy rules and guidelines to account for a transaction. Accounting textbooks as a result have more text and memorization than a standard history textbook. For example, a capital lease requires many tests: its useful life versus lease term, the present value of future cash flows must be 90% of fair value of leased asset, etc.
LiftedX 3 years ago
dude im a freshie and im previously taking this as a Major. any tips on how i could sink in to all this?? tnx men!
aggy028marc 3 years ago
AWSOME VIDEO!
MarkaRoxx 3 years ago
Man thats complicated.
Dallasboy678 3 years ago 2
I dont get it...I thought it was assets=libialities = capital.....sorry i just started principles of accounting and i wanted to get foundation before progressing
StuffedUpJerk 3 years ago
assets-liabilities= capital,
you're right.
but in the USA they call it Owner's Equity.
which is the same thing, cause its what the owners has.
hayzhayzhayz 3 years ago
Soon IFRS and US GAAP will be merging....soon we will need more forensics accounting more then ever just because of IFRS rules that promotes accounting principles instead of adhering to specific rules like we do in the states.
Best Example IFRS - R&D- research is expensed whereas Development is capitalized and amortized at a rate in which the company sees fit till when the project it completed
US GAAP - Expense it all...no need overstating the financials to make things look good.
sakiusad 3 years ago
what are th so called journals or special jurnals?
duardie2 3 years ago
the journals are the day-books which record the everyday matters of the business.
hayzhayzhayz 3 years ago
Hey, I'm in Accounting now. :) We are in corporate accounting right now, but I pretty much know what this is guy is talking about because we learned about sole-proprietorships. :)
Look out world, there is a new Accountant among you :)
justjustinme 3 years ago
Also gtgrajo thank u soo much I'll remember the rules. Good luck to me lolz
Liinaa1 3 years ago
It was tough in the first semester now not tough anymore. Thank u strike66!!
Liinaa1 3 years ago
I'm in governmental accounting class now..I miss these days...
Eddayson 4 years ago
What are the basic types of questions likely on an exam?
E.g. bank reconciliations, control accounts
dhoot18 4 years ago
btw to balance out the equation u need to know what accounts increase by debit or credit - it is as simple as (assets, expenses and dividends = balance increases for debit) all others increase with debit - this is how the equation balances.
so for the above #2 transaction
Jan 2 Prepaid rent expense 4800 Cash 4800 (prepaid rent with Cash)
shrike66 4 years ago
and all you need to do figure out where each acount falls - under liabilitities.... etc. then by simply always making sure that Assets = liabilities and Stockholders equity.. once you have figured out... wala! uve started your accounting, and its quite easy and worth it to learn
shrike66 4 years ago
not at all. just remember the accounting equation ASSETS = LIABILITIES + CAPITAL. you can also use 2=1+1... therefore, whatever you add into your asset (left side or what we call debit), you should have a corresponding amount on the right side or what we call credit.
gtgrajo 4 years ago
as long as you can remember the equation, you can never go wrong. also remember where accounts i.e. assets, liabilities, & capital normally sits. assets is always debit - so if you place the asset on credit, it means you're reducing your asset. liabilities and capital sit normally on the right or credit. therefore if you place them on the left or debit, you're reducing their amounts.
gtgrajo 4 years ago
It's ok now =) But yea it still is tough. Ur lucky u understand very easily. I wanna study finance as well cant imagine how hard it would be.
Liinaa1 4 years ago
Uhh soo hard pls post more of this
Liinaa1 4 years ago