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Expanded Accounting equation? with examples
Accounting Equation
The accounting equation is one of the fundamental elements of double-entry accounting and the foundation for all of the concepts learned in introductory accounting. In this short video, you will learn what the equation is and what each part represents.
This video was created in relation to the Utah State CTE standards for the Accounting I High School course. Specifically, this video prepares students to complete Strand 2, Standard 2: Demonstrate an understanding of the fundamental accounting equation.
while I did mention that learning to account is more like learning a language than math there are still several math equations that are important and learning these equations is key to understanding accounting of these perhaps.
Accounting equation: the most important is the accounting equation is the most fundamental equation of double-entry accounting and expresses the relationship between what is owed and what is owed by a business.
Accounting Basics 6-Expanded Accounting Equation
Financial Accounting we've been talking about the accounting equation and we've defined assets liabilities and stockholders' equity or owner's equity accounts haven't.
it's now time to look at the expanded accounting equation which adds two more types of accounts revenue and expense.
let's take a look at what revenue is revenue is why you're in business revenue says that remember the stuff you put price tags on and said customers come in and buy from me well when customers buy from you it shows up in the revenue account so this is everything you've sold whether you show goods whether you told services merchandise inventory when you sell it its revenue.
Expenses e is everything all the resources that you've used or consumed in order to generate that revenue. so expenses are called expired or consumed resources or expired or consumed costs.
Accounting equation for beginners with EASY formula!
Are you having difficulty in understanding and remembering the accounting equation? Today I will help you to understand it and stay tuned.
Master the basics of accounting with this easy formula! Great examples are included in this video to help you understand and build a strong foundation in accounting. It is important that you fully understand the accounting equation as it is the foundation of accounting and it will help you to easily grasp other accounting principles and theories.
The accounting equation is usually taught as one of the first few topics in accounting classes. It is very very important that you fully understand and master this.
Today I am going to help you to build a strong foundation in accounting so that all other accounting principles will be nutsy easy for you.
The accounting equation is assets equals liabilities plus equity. Remember that you will need to keep this balance at all times. no matter how many transactions that you have recorded.
The equation is quite long and it's not easy to remember. Right? And so, here comes my easy-to-remember formula.
The Accounting Equation For Beginners
The Accounting Equation is explained in full. This episode is part of a series exploring Accounting Basics. To see the whole playlist check out the link below. In this Accounting tutorial, you’ll learn how to derive the basic Accounting Equation from scratch.
I will demonstrate the relationship between Assets, Liabilities, and Equity which together represent the three elements of the Accounting Equation. This is the most important concept to understand when studying Accounting for Beginners because it is the foundation of the Double Entry Accounting system.
So, why the Accounting Equation? This equation lies at the heart of accounting and is the foundation of the double-entry accounting system.
I hope you find it informative.
Let's do this! The key principle behind the accounting equation is that Stuff the Business Owns is equal to the Stuff that the Business Owes, and it is vitally important that you remember that this equation balances.
Always, always, always! Now let's say I come up with this amazing idea for a business.
FAQs Related Questions & Answers :)
Introduction to Accounting. | What is accounting?
Accounting is a useful way of recording and summarizing financial information. Businesses use accounting to keep their financial information organized which helps them in making sense of their financial data and also keeps them compliant with financial regulations. Learn More.
A House An Asset Or A Liability? [ Finally Explained ]
Is a house an asset or a liability? That is one of the biggest questions many people have when they think about buying a house.
It is important to understand real estate in terms of assets and liabilities and the different ways you can buy a house so you will no longer wonder Should I buy a house? Learn more.
What is The Accounting Equation?
It is a basic but also a very important accounting principle, so what is the accounting equation? LEARN MORE.
so what is the accounting equation? I’m Thomas Harwood and Welcome to The Accounting Student, where we create free and short videos Learn more.
What is Revenue Expenditure? | ACCOUNTING
A company will have different types of expenditure, how will revenue expenditure be treated in the accounts?
what is revenue expenditure? Usually, a business will have cash coming in, which is can be known as income, and cash going out which can be referred to as expenditure. Learn more.
Accounting Equation
The accounting equation is one of the fundamental elements of double-entry accounting and the foundation for all of the concepts learned in introductory accounting. In this short video, you will learn what the equation is and what each part represents.
This video was created in relation to the Utah State CTE standards for the Accounting I High School course. Specifically, this video prepares students to complete Strand 2, Standard 2: Demonstrate an understanding of the fundamental accounting equation. Learn more.
Accounting Process for Transaction Analysis - WorldWide Webster
On the accounting process you'll recall from class the accounting process has three major steps. Learn more.
Journal Definition - What is a Journal?
Journal definition including break down of areas in the definition. Analyzing the definition of key terms often provides more insight into concepts.
The term journal can be defined as Record in which transactions are entered before they are posted to ledger accounts; also called the book or original journal. Learn more.
What is a General Ledger? (Recording Nonprofit Transactions)
What is a general ledger? A general ledger is a list of transactions by account. In this lesson, you’ll learn what transactions are, how and when to record them, and how they impact your nonprofit's accounting system. Learn more.
Depreciation explained
What is depreciation? How to calculate depreciation? Depreciation, amortization, and CapEx tutorial.
Overview of depreciation accounting (concept and application), and related topics such as accumulated depreciation, book value, residual value, historical cost, fixed assets, amortization, useful life, capital expenditures (CapEx), and capitalization. Intended for students and business people at both entry and advanced levels. Learn more.
The TRIAL BALANCE Explained (Full Example!)
Learn how to prepare a Trial Balance using T Accounts and Journal Entries. The Trial Balance is made easy in this episode of Accounting Stuff - Accounting Basics for Beginners Lesson 5 - you will learn: Learn more.
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