Summary of ACCOUNTING BASICS: a Guide to (Almost) Everything

00:00:00 - 00:10:00

This video covers the basics of accounting, including the accounting equation, revenue, expenses, and withdrawals (dividends). It also covers how this affects the equity part of the equation, and how a trial balance is created and used to check for errors. Finally, it demonstrates how Ruff Times has not been following accounting rules, and how adjusting entries are used to bring the books into line with the accrual method.

• 00:00:00 Financial accounting is the process of identifying, recording, summarizing and analyzing an entity's financial transactions and reporting them in financial statements. Double entry accounting is a theory that there are at least two equal and opposite sides to every transaction, and this accounting equation always balances. Transactions are posted to accounts of places where they are recorded, sorted and stored.
• 00:05:00 The author discusses accounting basics, starting with the accounting equation and then describing revenue, expenses, and withdrawals (dividends). He then shows how this affects the equity part of the equation, and how a trial balance is created and used to check for errors. Finally, he demonstrates how Ruff Times has not been following accounting rules, and how adjusting entries are used to bring the books into line with the accrual method.
• 00:10:00 This video explains the basics of accounting, including the balance sheet, income statement, and cash flow statement. It also includes a guide to creating financial statements. Finally, it provides instructions on closing entries.