- Financial accounting video series with focus on financial statements
- Understanding terminology and jargon is important
- Accounting is a language of business
- Six key words: assets, liabilities, shareholders equity, revenues, expenses, and
dividends
- Assets are anything of value owned or controlled by a company that provides
future economic benefit
- Examples of assets include cell phones, textbooks, and cars
- Assets like beauty, youth, and high school diploma do not find their way onto
financial statements because it's hard to put a number on them
- Companies only include assets that can be measured and valued.
This series on financial accounting begins by introducing six key words: assets,
liabilities, shareholders equity, revenues, expenses, and dividends. The focus of
this module is on assets, which are defined as anything of value that a company
owns or controls, created from a past transaction that gives a future economic
benefit. The video explains that assets can be tangible, such as cell phones or
cars, or intangible, such as intellectual property or goodwill. However, not
everything of value can be considered an asset for accounting purposes, as it can
be difficult to put a specific value on certain things, such as personal beauty or
youth. The video emphasizes the importance of understanding these key terms in
order to prepare and understand financial statements.
Bullet Summary:
- Financial accounting module focuses on six key words: assets, liabilities,
shareholders equity, revenues, expenses, and dividends
- This video explains the definition of assets as anything of value that a company
owns or controls, created from a past transaction that gives a future economic
benefit
- Assets can be tangible or intangible, but not everything of value can be
considered an asset for accounting purposes
- Understanding these key terms is important for preparing and understanding
financial statements.
but anyway it's 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 99% of the time
that's a sufficient understanding of what an asset it is now let's think about this
list so cell phones text books cars those are all things of value and absolutely
these types of assets find their way onto company financial statements when a
company is listing its assets it would list any cell phones the company has any
textbooks or any cars the company has those would all fit very easily under the
definition of asset the last three however absolutely would not find their way onto
a company's balance sheet even though I think their assets but I also get some more
interesting or creative answers some might say they have beauty or youth or even
something like a high school diploma because of course you're not grad student at a
university you probably have a high school diploma so these are all I think good
examples of assets of an undergrad now the first three on my list are much simpler
to discuss than the second three but we'll discuss both here the thing that all of
these things on the list have in common though and this is how I want you to think
about assets they're anything of value the word I want you to think of is they are
things of value so that word should just be really tied to assets the technical
definition gets a little bit more complicated I don't ask my students to give a
technical definition but your prof might if they asked for a technical definition
it's anything that a company owns or controls created from a past transaction that
gives us a future economic benefit that's a pretty technical definition hello and
welcome to our video series on financial accounting and welcome to module 1 in this
module we will learn all about the financial statements but before we can prepare
and understand the financial statement which we will do in this video series we
- Understanding terminology and jargon is important
- Accounting is a language of business
- Six key words: assets, liabilities, shareholders equity, revenues, expenses, and
dividends
- Assets are anything of value owned or controlled by a company that provides
future economic benefit
- Examples of assets include cell phones, textbooks, and cars
- Assets like beauty, youth, and high school diploma do not find their way onto
financial statements because it's hard to put a number on them
- Companies only include assets that can be measured and valued.
This series on financial accounting begins by introducing six key words: assets,
liabilities, shareholders equity, revenues, expenses, and dividends. The focus of
this module is on assets, which are defined as anything of value that a company
owns or controls, created from a past transaction that gives a future economic
benefit. The video explains that assets can be tangible, such as cell phones or
cars, or intangible, such as intellectual property or goodwill. However, not
everything of value can be considered an asset for accounting purposes, as it can
be difficult to put a specific value on certain things, such as personal beauty or
youth. The video emphasizes the importance of understanding these key terms in
order to prepare and understand financial statements.
Bullet Summary:
- Financial accounting module focuses on six key words: assets, liabilities,
shareholders equity, revenues, expenses, and dividends
- This video explains the definition of assets as anything of value that a company
owns or controls, created from a past transaction that gives a future economic
benefit
- Assets can be tangible or intangible, but not everything of value can be
considered an asset for accounting purposes
- Understanding these key terms is important for preparing and understanding
financial statements.
but anyway it's 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 99% of the time
that's a sufficient understanding of what an asset it is now let's think about this
list so cell phones text books cars those are all things of value and absolutely
these types of assets find their way onto company financial statements when a
company is listing its assets it would list any cell phones the company has any
textbooks or any cars the company has those would all fit very easily under the
definition of asset the last three however absolutely would not find their way onto
a company's balance sheet even though I think their assets but I also get some more
interesting or creative answers some might say they have beauty or youth or even
something like a high school diploma because of course you're not grad student at a
university you probably have a high school diploma so these are all I think good
examples of assets of an undergrad now the first three on my list are much simpler
to discuss than the second three but we'll discuss both here the thing that all of
these things on the list have in common though and this is how I want you to think
about assets they're anything of value the word I want you to think of is they are
things of value so that word should just be really tied to assets the technical
definition gets a little bit more complicated I don't ask my students to give a
technical definition but your prof might if they asked for a technical definition
it's anything that a company owns or controls created from a past transaction that
gives us a future economic benefit that's a pretty technical definition hello and
welcome to our video series on financial accounting and welcome to module 1 in this
module we will learn all about the financial statements but before we can prepare
and understand the financial statement which we will do in this video series we
