https://www.youtube .com/watch?v=Rpa_UAciIeU
Visit: http://www.accountingworkbook.com/ to download the problems found in the videos.If you’d like to become a member an gain access to over 100 “Members Only” tutorial videos found on http://www.accountingworkbook.com/ – click the join button or click this link: https://www.youtube.com/channel/UCNFClg6mzfZ5ixpuH9c7f1A/joinIn this Module we explore accounting terminology and learn to prepare the income statement, statement of changes in shareholders’ equity, and the balance sheet. Basic financial ratios are analyzed.
Thank you so much Tony
Could you tell me please
Is this exactly FA1 Foundation in accountancy lessons?
Great video, thank you. This is a great series of videos. I may finally learn financial accounting from your videos.
On that explanation for why those 3 items of “beauty, youth and High School diploma” are not considered assets. You mentioned that it is because you can’t put a value on them. I’m sort of confused on this, as follows.
Wouldn’t a more correct reason for not using them as assets for a company be as follows:
1 – They are not things owned or controlled by a company. That is, they may be considered assets by an individual, but since a company is separate from an individual, they can’t be considered assets of the company.
2 – Isn’t it correct that they can’t be considered assets of the company either since they were not created as a past transaction of the company?
Thanks for the help with this.
I guess if you were to stretch, the company “controls” the employee who has the degree. So in a sense the company controls the brainpower represented by the degree within their control for 8 hours a day. But I do think that’s fundamentally different from a Building or a Computer or whatever when it comes to being able to reliably put a value on it for the company.
@Tony Bell Thanks for the response. I do see your point. Let’s say the company pays a sign on bonus for someone with a certain degree. I suppose the company accountant could say that the sign on bonus is the TRANSACATION that created the company asset of an employee with a High School diploma? Is this reasoning correct?
But, youth and beauty. What would be an example of a company transaction made by the company to create or obtain that type of asset? I’m trying to apply the definition of an asset that you provided at 3:02 in your video. Sorry for all these pesky questions. But, I do understand the other concept that you were introducing in your video. That is, the concept of being able to put a dollar value on assets.
It turns out, that because of your videos, I finally understand debits and credits, so now I’m excited about learning the rest of financial accounting.
@Peter Davila It’s good reasoning, but a company would STILL not call it an asset. They’d consider it a payroll-related expense – the issue here is that too many games would be played as companies like assets and don’t like expenses, so if you could pay hiring bonuses and call them assets, lots of companies would do this – even when the long term benefits were unclear/nonexistent!
Thanks for the questions and for the feedback :)
Thanks for effort
WOW just wow! Thank you so much for your videos! I feel so confident in my understanding of these terms and what they actually mean. So grateful I stumbled upon your channel.
Thank you!!
Thank you Professor Bell, I found this video very helpful!
Hi! Just started this because I want to learn basic financing stuff, and this video was superb, looking forward to all the other ones, you explained everything better and more understanding than my teacher did all last year, take in mind english is not even my first langauge (Latvian is), so it is fascinating how great you learn actually, thank you in advance
Sir, please what if I borrow an amount of $200 and add it to my $100 to purchase a car of $300 and later on sell the car at $3500. please does that mean my equity will be $150?
Amazing job explaining Sir!
thank u
You are the best sir God should bless you and your family
Thank you for the video, I’m a science student and you made my life easy.
U dont even know how much your helping thank u
Thank you sir
Accounting made easy 👍