Accounting Lecture 01 - Basic Concepts

[WarfareDubstep]

This is a boring, difficult and fucked up subject, I seriously don't know why this is an obligatory credential for International Business. I want to get an undergraduate in BUSINESS, not accounting. Whoever actually came up with all of this shit including the terminologies and functional procedures should be burned inside an oven, indefinitely. Video made things a little clearer, but there's so much we have to learn and this is just scratching the surface.

[AccountingTutor]

@WarfareDubstep

I think you'll need to accept the fact that accounting info is relevant to all types of business management decisions, no matter what type of organization (profit, non-profit, governmental). There's no avoiding it. Note that this is one video in the series, which covers the introductory course's major topics. Hope they help!

[kinhtesat]

@AccountingTutor .thank you so much for providing us with many useful lectures. I am a student at Academy of Finance in Vietnam. my major is auditing. and really, i want to spend a speacial gratitude to you.

[randamwalking]

Thanks.And while I'm at it,I'd like to explain the activities of accounants.Accountants engage in a wide variety activities,which includes preparing financial statements such as income statements,balance sheets and cash flow statements.Accountants are required to determine a company's profit and loss balance,and to audit the company's books at the end of the year.Some accountants are also required to keep track of a company's inventory.

[RastaTurtle1]

Thanks Alot

[aravindnaick]

Excellent. Thank you.

[GTASABOSS]

goddam this is boring shit

[AZULAPRO]

@GTASABOSS

agreed

[hasanGUJAR2011]

OMG thanks alot love u dearr really thanks u make my concept upto some extent now i have little bit confusion abt credit and sebit i hope u will hv sm video abt that too iam going to search through ur channel and if its not there plz upload

[Code9aa]

I'm thinking about pursuing a degree in Accounting. Your video is very informative in the basics. Thank you!

[crafts]

Thanks for the refresher course. I wish youtube was around when I was going to college:)

[nycvw]

Very well explained!

[MypescpeTV]

Thank you this actually helped me with a class! Thanks!

[WarfareDubstep]

@flany1960 HAHAHAHAHAHA!!!!!!!!!!!!!!!!!!­!!!!!!!

[NiqueMK]

You give a lot of detailed descriptions about accounting which I appreciate. Thank you!

[abdulkhader27]

hello this is only basic accounts which related to only principle of accounting only

[shafeelaakram]

i'm so confused about debit credit while preparing balance sheet ...its so difficult...

[aprbookkeeping]

Very good, let's keep raising the level for professional bookkeeping

[MizzFancie]

This is great!!! i have taken years of college courses and you have made the basics soo much easier!!

[iibi1367]

Capital In accounting, capital is an investment of money with the intention of earning a return. As long as the amount of money is invested in the business, it will be treated as the money owed to the owner by the accountants.so the Journal entry that would be made on the investment of funds would be

Bank Account (DR) USD 10,000

Capital(CR) USD 10,000

Capital invested is a form of liability, because it is an amount owed by the company to its owner

[AccountingTutor]

@iibi1367 I think you're definitely on the right track, but be careful with your wording. Capital represents -owner's equity- in the business, while liabilities represent the -creditor's equity- in the business. The liabilities of a business have legal priority over the owner's equity. That is, in bankruptcy the creditors' are paid first, before any of the owner's equity can be distributed to the owner.

[FinalFantasyZack]

Thank you SO much, I just moved to a high school where I take accounting, and I am the only person in the class with no background whatsoever in the subject. This helps ALOT.

[Lurch150]

Rock solid explanation. Thank you so much. I'm probably gonna soak up as many of your videos as I can. Even Accounting for Dummies was too hard to understand. But here, you break everything down. Thanks a million!

[TopazGoldStar]

Hi, i neeed some help in my accounting. My parents put me is a accounting collage. I have never done any accounting. It is all foreign to me. If any one is doing accounting, can you please help me?

[DjT0myG]

do you have any video on bank reconciliation??

[AccountingTutor]

@DjT0myG - Yes I do. Scroll through the list of my videos and you'll see it. Hope it helps! :)

[williamkmanire]

Thank you for contributing this video. Your explanations are a lot more clear than what was available in wikipedia on the subject of accounting.

[Eminem117Nas]

@zidane583 yeah its boring as hell but the money you can get is really good

[BusinessHelpUKTV]

Need help surviving a business cash crisis? Watch youtube.com/watch?v=6svO3tuIk3­E

[ultimatemusiclover0]

Sir can i have a question? How can i record an account that is deposited? Example Mr.Ray deposited $500 in the bank.

[AccountingTutor]

@ultimatemusiclover0

Increase the "Cash" account, and increase Ray's "Capital" account.

[ultimatemusiclover0]

@AccountingTutor Thank you so much sir! =) Last question sir, how about if there's a term incurred? Example incurred operating expense on account. what will be the effect? =) Thank you so much sir.

[AccountingTutor]

@ultimatemusiclover0

Then reduce Owner's Equity by recording an expense, and increase liabilities. Videos 2 and 3 cover this...

[emrumpelstiltskin]

@ultimatemusiclover0 It depends on who is Mr. Ray and what is the money for. =)

[AccountingTutor]

Take it from me - age 30 isn't "old" at all. Companies hire based on ability, and your GPA will reflect that. Suggestion: If you didn't take all that many courses at your first school, start over at a different one. Your GPA won't be affected by your earlier grades that way. If you do have a lot of credits, then go ahead and finish your bachelor's, "repeating" as many courses as possible, but do a masters (one more year) at a top school and nail down a good GPA there.

[pem82sox]

would it be impossible to get a job in accounting if i graduate at 30?...I messed up badly in college a few years ago but have my shit together now and am going back to school to study accounting, though I won't finish until at least a year and a half from now...not the best forum to ask this question I know but regardless any advice would be greatly appreciated

[peterjol]

Forget accounting...the monetary system is useless for the human race.......join the Zeitgeist movement and support a Resource Based Economy.

[anjoskold]

@peterjol enjoy unemployment

[HomoSapien2012]

This is fabulous!!! this is exactly what i've been looking for. You are a great teacher. I salute you.

[Finsoul145]

this was released 9/11

[HistoryLubber]

@Finsoul145 Is September 11th the day of rest?

[Finsoul145]

@HistoryLubber eh, what???

9/11 Is when the twin towers went down

World Trade Center.

[tuberlxb2012]

Terrific Video. Thanks for the visual. This is the best explanation of the accounting equation that I've ever heard and it makes complete sense. I will never forget this!!

Thank you, Thank you, Thank you!!!!!!

[AccountingTutor]

@the99drill

I don't know about Washington State specifically, but all states require at least 150 credit hours of coursework, of which a portion must be in business and accounting. The universities in your state will have programs designed to give you all the hours you need to qualify, and all the material you need to pass the exam...Contact them and let them tell you about their programs.

[Strongguy818]

Do you recommend taking accounting as a major in college. If so, Why?

[AccountingTutor]

@Strongguy818

Yes I do. Go to the Department of Labor's web page and find the "Occupational Outlook Handbook." Enter "Accountant" into the search field, and read about job growth and salary levels in the field. Economic recovery, coupled with regulation, will likely ensure that Accounting stays a high-demand, high-salary field for the foreseeable future.

[crw45able]

that's the first time i've ever been congratulated for watching a u tube video!

[timay569]

This lecture seems a bit off, an asset is basically something that allows for cash flow, correct me if I'm wrong but things like paper and chairs are not assets. A leased office that you own and get positive cash flow for is an asset though. 

[AccountingTutor]

Oops! I'm afraid you're wrong on both counts! :(

Refer to your accounting text book and you'll find that an asset is defined as something you own that provides you with future utility. Paper (supplies) and chairs (office equipment) are assets. Rented property (the office) is not an asset, unless it meets very special tests and can be accounted for -like- an asset...

[dongocthangmf]

@AccountingTutor i come from Vn and starting learning english. so hard!!!

[AccountingTutor]

@dongocthangmf

All good things require time and effort. Congratulations on your progress. I'm sure you will have a great future in America, and Accounting is a good way to make it all happen. :)

[kingofdice66]

@timay569 you've made a fool of yourself, now sit down

[propsaganda]

Excellent lecture for myself! I got a clear and concise understanding of this subject, for I am new to it's core definition. Now I won't seem as hesitant to pursue this as a new career path.

[inglescontable]

Before listening to this interesting lecture, I never thought that such a good idea of broadcasting accounting thru You Tube would some day bring this benefit for all of us the public accountants. I hope that we will have more accounting issues about advanced chapters on this fascinating science.

Many thanks to You Tube

José Ramírez Carbonel

University Professor of

English for Accountants and Auditors

[ThePantha2]

Good info, I intend to be a financial or tax accountant.

[leroyjenkins12345]

Ur vids are awesome I'm currently in accounting and can't wait to get my degree :)

[1plus1pac]

i learnt accountin through this video yeaaaah

[codelyokoblue]

does anyone know what website i can go to too find free accounting or bookkeeping lessons in my area?

[llrond]

I never thought about this before, but looking at the equation again, it is possible when 2 sides of the equation are not equal isnt it? For example, the asset side can be greater than the equity + liability, but it isnt shown on the balance sheet, wouldnt that mean the business is undervalued? and vice versa the business is overvalued if the assets arent worth much like creditors/stockholders thought they are?

[AccountingTutor]

@llrond

I think you're thinking about market prices for stocks (the owner's equity in a corporation). Accountants record the assets at original cost, and the owner equity in the business is recorded at cost, too. Stock prices can go up or down, but owner equity is always kept at cost in the accounts, so the equation cannot be out of balance. Bankers and investors understand that market value may be higher or lower than the cost basis of the owner equity that is reported on the balance sheet.

[AccountingTutor]

@EdmondDantes1934 If you own 20% of the owner's equity in a business (you're a 20% partner or own 20% of the stock of a corporation), then you get 20% of the profits. It's correct to say that you get 20% of the revenue, but you also "get" 20% of the expenses! When people buy stock, they "buy" those profits - today's and tomorrow's, too. A company may not have much now, but if future expected profits are high, the stock price will be, too.

[birdfly43]

im 16 turning 17 in march

im looking to go into business working my way up and hopefully get a well paying job

should i stick with accounting or...

[AccountingTutor]

@birdfly43 In my opinion Accounting is the way to go, as long as it "works" for you. It's not good to major in a field you don't like and have to struggle with, but if it's good for you then it will be good to you, too! (Go to the Department of Labor's web page and check out "Accountant" in the Occupational Outlook Handbook for into about salary levels and job growth...

[YoungRamsis]

the major element of financial statements are:

ASSETS LIABILITIES EQUITY  CONTRIBUTED CAPITAL

REVENUE EXPENSE DISTRIBUTIONS NET INCOME

GAINS LOSSES

[ajaygshah]

Why is profit earned by the business on the right side of the equation? shouldn't it be an asset? Thanks!

[AccountingTutor]

@ajaygshah

Hi - Actually, profits are on both sides of the equals sign. Revenues increase assets and owner's equity, and expenses decrease assets (or increase liabilities) and decrease owner's equity.

[ajaygshah]

@AccountingTutor My understanding is that revenues and expenses only affect income statements and not balance sheet. Profits earned affect only the owners equity side of the balance sheet, namely retained earnings.

[mrandreabargnani]

Assets is the monetary value of what your company has... equity is what you own of the assets, liabilities is what creditors and other lenders own of the assets

[RRaphael101]

Why are you confining the definition of accounting to just assets and equity?...Accountants also account for liabilities so won't it be more convenient to say accountants account for assets, liabilities, and equity or instead accountants account for all business transactions that are financial in nature?

[AccountingTutor]

@RRaphael101

Hi. Actually, liabilities represent the creditors' equity in the business. That is, the owner and the creditors both have equity in the business, as is explained in the video. All we do in accounting is keep track of the assets and the ownership of those assets (by the owner and the creditors - both of whom have equity interests in the business).

[RRaphael101]

@AccountingTutor Thanks for the prompt response...got your point!

[arjoslngga]

oh men you are awesome

[thekilmer09]

...I'm a ninth grader and I want to accounting since that's the course I'm taking...do you think it's possible for me to understand at this age?

[Cheejyg]

thank you! :)

[Jabartanha]

Excellent,

Thanks alot for posting,

It help me alot :)

[sytrexx09]

not too long but very succinct.

[bkerr11]

What are the three books of accounts? I have bookkeeping ( or is it called the ledger?) and the cash book but I can't for the life of me remember the third one.

[AccountingTutor]

There are only two primary "books," I'm afraid - the general journal and the general ledger. It's possible to have several other kinds of journals and ledgers, though, along with them. The old joke is that companies actually maintain three sets of books - one for the shareholders, one for the IRS, and one that reflects reality and that the managers use! :)

[chocoluv777]

can a share holder be a creditor??

[AccountingTutor]

Sure thing. If I own stock in a corporation and also own bonds, I'm both a creditor and a shareholder.

[TheBani87]

thanks to post such an excellent video, please post more videos.

[thebboysmith]

do you have a real estate background?

[AccountingTutor]

Sorry - I don't...

[EvaSlash]

EXCELLENT video....thank u so much

[WealthVids]

Hollywood Wealth Vids Forum

[gamervgd]

theirs another video in your module you said lets see it btw thanks for this one

[H4RG1T41F3C5K3M4D4R]

funda go ro/

[MrGoddas]

damn this is so nyc

[deya88]

Wow, I have taken about 4 Accounting classes and this video has helped me so much! Great job!

[mian4682]

can u make a video of about JSC (joint stock company) i wana lectures about JSC(joint stock company)

[standstrong123]

can you make a video about ifrs? can you compare ifrs with gaap? can you explain why ifrs is better?

[RTX94]

Can you make a video about Incomplete Records? The most difficult lesson for me.

[fuckingwow]

more more more please

[mrah2006]

thank you

[abhi0520]

Amazing ...clear and crisp lecture, very good,

Thanks.

[21eduj]

what is roket surgery?

[aznracerboi2k5]

hhahahahah

[mzfiesty]

rocket science/brain surgery

[chubbychilli]

good video. nice and simple. maybe there are no more videos becoz they want you to visit their website.  :)

[albuswaqas]

please post more

[eklipst2x]

WHERE'S THE NEXT VIDEO?????

[millball]

September 08!? This is the only Accounting clip that i've enjoyed watching. I wanna see more! please

[chinchonchinchon]

Thanks..Where is the following lecture, I can´t find it!

[exodus2706]

this was very interesting. are there anymore videos on the way?

[dujonwright]

keep adding i lernt some thing

[millball]

pictures makes lernding fun :D

[elgoetha]

@dujonwright except spelling

[Alfantazi]

A very helpful and interesting concept

[almqes]

very educational thankx .