In this video, learn how to use debits and credits to analyze transactions. Again, the debits and credits should balance.
- The debit and credit system can be summarized … in two basic rules. … Increases in assets are written … on the left side of the page. … Liabilities and equities are exactly the opposite. … That's it, now let's talk about why this marvelous … debit and credit system exists. … The accounting equation can be used … to analyze transactions, to refresh your memory, … the accounting equation is assets equal liabilities … plus owner's equity. … Now although it makes conceptual sense, … a row and column spreadsheet analysis format … based on the accounting equation can be quite cumbersome. … Suppose that a company has 200 accounts, … and 10,000 transactions each month. … The resulting spreadsheet would quickly grow … to unwieldy size, when the process underlying … modern bookkeeping was formalized 500 years ago … maintaining a 10,000 row by 2,000 column spreadsheet … by hand, just not practical. … In addition the realities of manual arithmetic … made it desirable to have a system based … as much as possible on addition rather than …
- Accounting basics
- Reviewing the balance sheet and income statement
- Credits, debits, and journal entries
- Making financial statements
- Issues in financial accounting
- Revenue recognition
- Deferring taxes
- Analyzing financial statements
Skill Level Beginner
Accounting Foundations: Internal Controlswith Kay Stice1h 46m Intermediate
Cost Accounting: Analyzing Product Profitabilitywith Rudolph Rosenberg56m 49s Intermediate
Why financial accounting?1m 13s
1. Accounting Basics
The accounting equation3m 37s
2. The Financial Statement
3. The Mechanics of Accounting
4. Current Issues in Financial Accounting
5. Financial Statement Analysis
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