FA1 - Introduction to Financial Accounting
Financial accounting is all about language they call accounting the
language of business. if you want to have a prayer to survive your
accounting class you're gon na need to understand these six words
that we 're gon na introduce in this video. the six words assets
liabilities, shareholders, equity revenues, expenses and dividends are
key to your life as an accountant well. They 'll all be key. an asset is
anything you own or you can typically think of it as owned an intro
financial accounting, but the leased assets also can count under this
category, but most of the time it 's just own stuff. You own that 's good
to own that gives us a future economic benefit. the last three assets
However, absolutely would not find their way onto a company 's
balance sheet even though I think their assets I think they are things
of. value. something you should want to own and own more of there 's
something called accounts receivable and what accounts receivs are
when somebody owes you money, so you 're gon na collect money in
the future of future economic benefit. I use that word well we 're
collecting money in future that's a future benefit. we have the broad
category which I 'll call property plant and equipment..
Notes payable is a typical liability that you 'll see on a baljeet and it
just means within typically within 30 days. You 've got to pay it back
and so I always think of a phone bill When you think account payable
just think of phone bills and bills like that and you 're not far off other
types of liabilities well all sorts of we 'll call them. shareholders equity
is the concept of what 's left over if I sold off all the assets. I paid off
all. the debts. What goes in the shareholders pockets that is their
equity so from my home. We would call it home equity for a company
ivory V8 adhere as se and se stands for shareholders equity. revenues
are what happens when the company does what it does to earn
money. Dividends are dividends are shareholders pulling profits from
the company. if the company 's revenues exceed the expenses, we are
profitable and if we earn more than we spent, we can keep the money
keep those profits in the company or the shareholders can take a
dividend..
How much money goes into the shareholders pocket? What 's the
shareholders piece of the pie that is their equity revenues are the
company doing what it does to earn money Expenses are the costs of
earning that money and dividends are when the shareholder wants to
pull money from the company they take a dividend all right with those
six words in mind..
Financial accounting is all about language they call accounting the
language of business. if you want to have a prayer to survive your
accounting class you're gon na need to understand these six words
that we 're gon na introduce in this video. the six words assets
liabilities, shareholders, equity revenues, expenses and dividends are
key to your life as an accountant well. They 'll all be key. an asset is
anything you own or you can typically think of it as owned an intro
financial accounting, but the leased assets also can count under this
category, but most of the time it 's just own stuff. You own that 's good
to own that gives us a future economic benefit. the last three assets
However, absolutely would not find their way onto a company 's
balance sheet even though I think their assets I think they are things
of. value. something you should want to own and own more of there 's
something called accounts receivable and what accounts receivs are
when somebody owes you money, so you 're gon na collect money in
the future of future economic benefit. I use that word well we 're
collecting money in future that's a future benefit. we have the broad
category which I 'll call property plant and equipment..
Notes payable is a typical liability that you 'll see on a baljeet and it
just means within typically within 30 days. You 've got to pay it back
and so I always think of a phone bill When you think account payable
just think of phone bills and bills like that and you 're not far off other
types of liabilities well all sorts of we 'll call them. shareholders equity
is the concept of what 's left over if I sold off all the assets. I paid off
all. the debts. What goes in the shareholders pockets that is their
equity so from my home. We would call it home equity for a company
ivory V8 adhere as se and se stands for shareholders equity. revenues
are what happens when the company does what it does to earn
money. Dividends are dividends are shareholders pulling profits from
the company. if the company 's revenues exceed the expenses, we are
profitable and if we earn more than we spent, we can keep the money
keep those profits in the company or the shareholders can take a
dividend..
How much money goes into the shareholders pocket? What 's the
shareholders piece of the pie that is their equity revenues are the
company doing what it does to earn money Expenses are the costs of
earning that money and dividends are when the shareholder wants to
pull money from the company they take a dividend all right with those
six words in mind..
