Every transaction that a business undertakes is analyzed, converted into the debit-and-credit language, and then recorded in the financial records using journal entries.
- Let's get an overview of the specific items included … in the financial statements. … These are the things that are recorded … in the books through the debit … and credit journal entries. … - We record assets; we all have … an intuitive sense of what assets are. … A formal definition is that assets … are resources owned or controlled … by a company that will provide probable future benefit. … - [White-Haired Man] Let's take the simplest example, cash. … For example, if you look at the balance sheet … of Apple, you see they've got lots of cash, … billions of dollars of cash. … This cash is tracked into and out … of the company through debit … and credit journal entries. … - Now let's do a little mental trip … into a Walmart location. … Close your eyes, drive into the Walmart parking lot, … and get out of your car. … Now you're walking across the parking lot. … You're walking on one of Walmart's assets. … The land is a Walmart asset. … - You walk into the building. … The building is another Walmart asset. …
- Identify how a balance sheet reflects the accounting equation.
- Name the account where debits are increases and credits are decreases.
- Define a journal.
- List the three things, in order, that you must address when making journal entries.
- Explain the function of financial statements that is most important for entrepreneurs.
- Assess the purpose of a trial balance.
Skill Level Beginner
1. Review of the Financial Statements
2. Fours Steps in the Bookkeeping Process
3. How Transactions Affect the Accounting Equation
4. The General Ledger
5. Illustration of the First Three Steps in the Accounting Cycle
The role of computers3m 44s
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