In this video, learn how to detail the systematic process by which financial statements are produced. This includes analyzing transactions using the accounting equation.
- The financial statements are the cap stone … of a careful bookkeeping process. … - The key to properly recording a transaction … is remembering that the accounting equation, … assets equal liabilities plus equity, … must always be maintained. … - To illustrate the process of transaction analysis, … we use a hypothetical transactions for Hannah Market. … A small retail business. … - [Man With Glasses] During the year, … Hannah entered into the following transactions. … - [Man Without Glasses] One, … invested $700,000 of her own cash in the business. … - [Man With Glasses] Two, … borrowed $300,000 cash from the bank. … - [Man Without Glasses] Three, … purchased land, a building, and equipment, … for a total of $2 million. … Hannah paid $100,000 down in cash. … And the remaining $1.9 million … is financed with a mortgage. … - [Man With Glasses] Four, … purchased inventory items for resale, … for a total of $1,300,000. … The entire amount was put on suppliers accounts. … So no cash was paid at the time of purchase. …
- 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 Jim Stice1h 29m 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
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.