1:00 the balance sheet: asset: own, liability: owe, equity: worth. income statement/ P&L/ operation. 1:20 cash flow statement. 2:05 balance sheet: asset:equipment and something that used to create goods or services. 2:25 current assets: used within 1 year. such as cash, account receivable, inventory. 2:40 non current-asset: property, plant and equipment, technology, patents, trademarks. 2:50 current liabilities: due in 1 year; non-current liabilities: due in more than 1 year. 4:00 if a company purchase sth in credit, then this is account payable. ... typically in 90 or 30 days. 4:45 we arrive on the total liabilities line on the balance sheet. 5:20 either the company earn profit or records losses. retained earnings: can remain on balance sheet or be paid out as dividends. 6:15 it's important to flag that ... 6:45 double entry accounting. 9:30 took out a 4 year bank loan of 50. 12:35 revenue can also be referred to sales or turnover. 16:10 buying and selling on credit. 16:45 a reduction of 60, when the inventory is subsequently sold. 17:25 the balance sheet is continuing to balance.
Perfectly explained. Thank you for the valuable content. But for the credit card example for Accounts Receivable, the company selling the goods receives the cash immediately from the bank. It is the bank that does not get the money immediately and lends it to the payer/customer.
At 7:40 : should the total assets and total liabilities & SE not still be 100? Of course, the cash goes down if you buy equipment with the cash you got from the loan but the value is just transferred not extinguished. So the total value of both balance sheet sides should still be 100 and not 0, or am I doing a stupid mistake?
Thank you a bunch, so the retained earning is simply deducted whenever one of these accounts are recorded ( Salaries, Expenses, Dividends) .. well to be more precise, these also affect the retained earnings ( Taxes, Interests paid, Dividends )
The clearest explanation of the balance sheet I've ever seen! Thanks a lot!
really clear and crisp explanation. keep up the good work!
1:27
A simplified version...easy to understand. Thank you for posting.
The concept of accounts payable and receivable are nicely explained.
1:00 the balance sheet:
asset: own, liability: owe, equity: worth.
income statement/ P&L/ operation. 1:20
cash flow statement.
2:05 balance sheet:
asset:equipment and something that used to create goods or services.
2:25 current assets: used within 1 year. such as cash, account receivable, inventory.
2:40 non current-asset: property, plant and equipment, technology, patents, trademarks.
2:50 current liabilities: due in 1 year; non-current liabilities: due in more than 1 year.
4:00 if a company purchase sth in credit, then this is account payable. ... typically in 90 or 30 days.
4:45 we arrive on the total liabilities line on the balance sheet.
5:20 either the company earn profit or records losses.
retained earnings: can remain on balance sheet or be paid out as dividends.
6:15 it's important to flag that ...
6:45 double entry accounting.
9:30 took out a 4 year bank loan of 50.
12:35 revenue can also be referred to sales or turnover.
16:10 buying and selling on credit.
16:45 a reduction of 60, when the inventory is subsequently sold.
17:25 the balance sheet is continuing to balance.
Perfectly explained. Thank you for the valuable content. But for the credit card example for Accounts Receivable, the company selling the goods receives the cash immediately from the bank. It is the bank that does not get the money immediately and lends it to the payer/customer.
I liked so much of these videos
Excellent video. Thank you. Congratulations! 😊
Perfect, thanks!
Many thanks from Russia! Very clear and useful!
Very useful, as usual!
Thank you @ CFI
I enjoyed and learned a lot from this series
At 7:40 : should the total assets and total liabilities & SE not still be 100? Of course, the cash goes down if you buy equipment with the cash you got from the loan but the value is just transferred not extinguished. So the total value of both balance sheet sides should still be 100 and not 0, or am I doing a stupid mistake?
great teacher
Thank you a bunch, so the retained earning is simply deducted whenever one of these accounts are recorded ( Salaries, Expenses, Dividends) .. well to be more precise, these also affect the retained earnings ( Taxes, Interests paid, Dividends )
Thanks for your feedback! :) - Maria
2:03 2:15 2:32 2:50 3:34 3:53 4:46 4:53 5:03 5:21 5:47 5:59 6:15 6:53 7:16 7:46 8:39 14:47
Nice job.
Thank you
You're welcome! - Maria
It's good thanks for it
Why we but in shareholders' equity 100
clear vid; easily understood by a 13yr old
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