Join Earl Kay Stice for an in-depth discussion in this video Overview of the balance sheet, part of Accounting Foundations.
Voiceover:Let's talk about the balance sheet…in a little bit more detail.…The balance sheet is built around…one of the most awesome creations…of the human mind, the accounting equation.…There it it, assets equal liabilities plus equity.…Now, I can tell you're underwhelmed.…You thought well, I was expecting a little bit more,…something like E equals MC squared.…This is just as great as E equals MC squared.…Let me tell you where this accounting equation comes from.…First the assets side.…You know what that is, list of assets.…Here's the thing.…People have been listing assets…for thousands of years.…
I told you that there's evidence that farmers…were keeping lists of assets 7,000 years ago…in ancient Mesopotamia.…There's no great insight there.…How many cows do I have?…How many goats do I have?…How much wheat do I have?…A list of my assets.…The insight behind this accounting equation…was created a little bit over 500 years ago in Italy.…The traders in Venice and other traders in Italy,…they had this insight.…Listen, let's keep a list of our assets…
- What is accounting?
- Working with balance sheets and income statements
- Determining the costs of products
- Performing break-even analysis
- Determining average and marginal tax rates
- Understanding tax deductions and credits
Skill Level Appropriate for all
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
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