In this video, learn how to list out the basic elements of the accounting equation. This equation shows how everything needs to balance in accounting.
- The balance sheet is built around … one of the most awesome creations of the human mind, … the accounting equation. … There it is. … Assets equal liabilities plus equity. … Now, I can tell you're underwhelmed, … you were expecting a little bit more, … something like Einstein's famous equation … E equals MC-squared, well, in it's own way, … the accounting equation … is just as great as E equals MC-squared. … Let me tell you where this accounting equation comes from. … First, the asset side. … People have been listing assets for thousands of years. … There's primitive written evidence … that farmers were keeping lists of assets … 7000 years ago in Ancient Mesopotamia. … The great insight behind the accounting equation … was created a little bit over 500 years ago in Italy. … The traders in Venice and other traders … in Italy had this insight. … Listen, let's keep a list of our assets … like we've always been doing, but in addition, … every time we get an asset, let's also write down …
- 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
- 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.