Description:
In this video we show you how to use the basic accounting formula (Assets = Liabilities + Equity)
Video:
Table of contents:
- 00:00:13 – Basic accounting formula (Assets= Liabilities + Equity)
- 00:00:27 – Example
- 00:01:13 – Asset – Liability = Equity
- 00:01:47 – Balance sheet
- 00:02:14 – Trial balance
- 00:02:44 – Asset – Liability = Equity; Asset = Liability + Equity
- 00:02:53 – Example in QuickBooks Online
- 00:05:48 – What exactly is Equity? (Equity = Assets – Liabilities)
- 00:06:45 – What is exactly net income?
- 00:07:03 – Assets = Liabilities + Owner’s capital – Owner’s distributions + Sales – Expenses
- 00:07:34 – Assets + Owner’s distributions + Expenses = Liabilities + Owner’s contributions + Revenues
- 00:08:35 – Assets – Liabilities = Equity or net assets “net worth”
