The balance sheet (informed by the accounting equation) is a listing of a company's assets, obligations, and liabilities.
- Now, before we get into the complexities…of analyzing transactions and such,…let's step back and look at what this analyzing…of transactions eventually results in.…The financial statements.…One of the major results of bookkeeping…is to provide information with…which individuals can make decisions.…Financial statements are a means whereby the effects…of lots of transactions are summarized and reported…in a manner that is useful to users of financial statements.…The three most common financial statements are…the balance sheet, the income statement…and the statement of cash flows.…
Now, let's take a look at each of these in turn.…Now we'll start with the mother of all financial statements,…the balance sheet.…The balance sheet is called…the fundamental financial statement.…It contains a listing of a company's assets, it's resources,…it's valuable things like cash, inventory, land,…those things that it holds to sell.…Those are it's assets.…The other part of the balance sheet is a listing…of where the company got the money to buy those assets.…
- 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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