Bookkeeping is not just an amusing exercise in encoding business transactions into the debit-and-credit language. Bookkeeping leads to financial statements which make it possible for entrepreneurs to convince strangers to provide the financing to turn their entrepreneurial dreams into reality.
- All right, let's imagine that we want to buy this building … and convert it into a large ice cream production facility. … Now how much do you think it would cost … to get our ice cream business up and running? … - Well, if we want to do this right, … buying the land, building, equipment, … and initial stock of raw materials? … That's going to cost us about $100 million. … - See, I can see it in my mind's eye, … the gleaming stainless steel mixing vats, … the happy employees wearing white clothes, white shoes, … white caps to emphasize the cleanliness of the facility. … The huge freezer storage rooms … stacked with delicious ice cream. … - Yeah, yeah, that's a great vision, but back to reality. … Where would we get $100 million in financing … to make this happen? … - [Man With Glasses] If we want to buy $100 million … in ice cream production assets, then we need $100 million … in money from somewhere to buy them. … - The reality is that if we want to go … from small-size business people to medium-size …
- Reviewing financial statements
- Analyzing transactions
- Categorizing transactions
- Obtaining financing and buying equipment
- How revenue and expenses fit in the accounting equation
- Recording the sale of goods or services
- Posting journal entries to accounts
- The accounting cycle: step by step
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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