The ACCOUNTING EQUATION For BEGINNERS

The Accounting Equation 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.

⏱️TIMESTAMPS
00:00 - Intro
00:30 - How the Accounting Equation Works
00:52 - What are Assets, Liabilities and Equity?
01:13 - What is the Accounting Equation?
01:30 - What are Assets, Liabilities and Equity made up of?
02:03 - What is a Balance Sheet?
02:16 - Accounting Equation Examples
03:37 - Recap
04:16 - What is the Best Accounting Book for Beginners?

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#accounting #accountingbasics #accountingstuff

[emmalani]

I have a bachelor's degree in accounting and this 5 minute video was more helpful than all of my accounting courses....

[irl]

Anyone getting into accounting now, you’ll learn more from this 5 minute video that makes sense, than about 8 hours of your first classes in accounting

[unknown-npfm]

You're a bloody legend for splitting the video up into titled sections. First time I've ever seen that on YouTube to be honest, and it's definitely one of those things you didn't know you wanted until you had it. Great video. You should probably allow ads on your videos as soon as you can cause this is good content and you should be paid for it.

[jayrajmali]

There are many videos for accountancy but this video was best

[maxland]

Man, you're genius. I'm a high school financial accounting teacher and your video will help me a lot when explaining accounting equation to the first year students as I'll be teaching it today.

[milesaustin]

James I wanted to say thank you. I just passed my MBAs accounting exam and I don't think I would have done anywhere near as well without your videos, many many thanks.

[PhilipEapen]

You succeeded in teaching me my first lesson in accounting. I've had so many teachers over the years who tried and failed. Thank you.

[GetRight]

That was one of the best explanations I've heard for any topic. Great job

[laniloveaj]

Man... can you teach professor's how to teach?

[gailspitzer]

Great video! I took accounting 30 years ago and am now re-freshing my accounting in hopes of opening a business in my retirement years. I love your simple, clear explanations!

[musicfanBRA]

I was struggling with the logic of this equation, but the idea that what you owe depends on who the lender is (so, Liabilities for 3rd parties, Equity for the owners) is a GENIUS way of explaining it. Thank you!

[kellymckay]

This is absolutely wonderful!!! Better explanations than 3 semesters of accounting coursework and a year and a half of bookkeeping work that I've done. Thank you, please keep making more of these.

[koteswarris]

You are singlehandedly saving my career lol. I watched this in my 11th grade 5 years ago, I'm taking my CMA exams (equivalent to CFA kind of in India) and here I am watching your videos again. Thank you so much!!

[easymoneyhooper]

Learnt more in a week of watching your videos than a semester of accounting at degree level, thank you so much bro your a life saviour!

[Andy-bris]

Boy oh boy -- I came across your channel while looking for resources for Bookkeeping, as I am changing gears from IT to bookkeeping/accounting. Your content and presentation is brilliant and I have learned a ton thus far -- more binge watching this weekend. Many thanks for the great work!!! =)

[ntokozomduna]

Dude! Wish I had your videos in my first year studying accounting. This is a gold mine. I'm sharing it with friends.

[jobkhanyile]

The best teacher I have ever seen on YouTube thus far hands down

[koteswarris]

Thank you so much ! 2 years ago I watched this exact same video before my exams, and here I am again watching it for revision. Thank you !!!

[rambot]

Thank you so much !

My course directly told me that the sale of merchandise of $100 :

1) Increases cash by $100
2) Increases Retained Earnings by $100

I was unable to reconcile this until I watched your video !

Also,

Stuff that business owns = Stuff that business Owes.... so powerful yet simple !!

[madebytashalarae]

I'm taking accounting courses right now for my Bachelor's and your videos are saving the day!! I've been trying to understand debits & credits for hours now and the more I watch your videos the more it makes sense. I'm gonna keep watching but I had to say thank you for this!!