FA3 - Understanding Assets, Liabilities and Equity

Visit: www.accountingworkbook.com/ to download the problems found in the videos.
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In 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.

[@minaandallo]

As a freshman, I had a pretty difficult time keeping up with the lessons I am studying. These kind of lectures are so helpful and motivating to me! Thank you so much 💖

[@PunmasterSTP]

Understanding assets? More like "learning material the fastest", because these videos are teaching me so many things so quick. Thanks again so much for making them!

[@chanellopez3895]

I wish I found you when I started my accounting course!

[@3912James]

You are awesome.... as someone who is struggling with accounting....I appreciate how you're breaking it down to a level that I can understand.

[@zachhoughteling5547]

Thank you I’m a senior in college and I took accounting 1 and 2 my first 2 semesters, and I’m in my last accounting class needed a refresher!

[@bianca5353]

Thank you!!! I'm starting school for accounting in January of 2021. I been going over my accounting class from beginning to end before I start school so I can be kind of familiar with what my teacher will be teaching. Your video's are so helpful thank you so much. I'm pretty sure I will be back look at your videos once again when I start. Thank you one more time you really have a gift for teaching. GOD BLESS

[@adriennehines5845]

You're such a talented instructor - thank you!

[@Garage516]

Professor's videos truly help me to understand the structure of accounting and so on. I did'nt see the videos whilst i was taking the introduction to accounting. But this semester im taking managerial accounting and discovered the channel just in time. I wish i could join the members only section but since im living in Turkey and our economy is quite a bankrupt now against the USD, its quite expensive for me. But for all the students out there like me, i advise Mr.Bell's videos highly. Dont forget to download the Workbook also. Cheers!

[@joaovictorbarbosa9785]

Thank you for your videos, Professor.

[@augustayartehyarteh4467]

Nice explanation to see the category each account they belongs to.

[@Lana-or5dz]

Very helpful video. Straight to the point. Currently taking Accounting. Looking forward for more videos.

[@PunmasterSTP]

Hey how did the rest of your accounting class go, and how are your studies going?

[@SamantaRicatti]

You're a great teacher, thank you. Happy Tuesday❣️

[@wheresmyfood5877]

Love your videos from South Africa Im in school and i do accounting and im looking to pursue a career in chartered accounting and your videos helps me and teaches me alot keep up the amazing work 👌👍

[@rams_billionaire]

Also from South Africa, doing my first year at North-West University 😉

[@rasulovdoniyorbek6419]

You have excellent knowledge 👍

[@lcasounds1590]

About to be going for my accounting diploma (then moving to masters degree) afterwards. Thank you!

[@tm9426]

Thank you for your help.

[@Tym4477]

Awesome breakdown👌 Thanks much!

[@andrewsilvia1900]

We Know its you Ray Romano! haha great stuff man! i'm very new to accounting and you make it seem pretty easy so far

[@katlopole4757]

Thank you..I am computer science student learning on my own.

[@michaelelrierrailey1581]

Thanks professor

[@peterdavila3045]

Another great video. Thank you. Here is a question that I have always had. For some items, it is obvious to me when to categorize something as either an expense or a liability. I understand how the supplies used up by the business in a period of time are an expense and not a liability. But, other things are not as clear. Take "Income Taxes" to be paid. Why would that not be considered a liability instead of an expense? I'm seeing a fine line between something that is classified as an expense or a liability. Or is it that the income taxes are a liability until they are paid within a period for an Income Statement and then at the point they're expensed? Thanks for the help with this. P.S. On your comment about Cryogenic preservation of body. I'm not sure if your mention of it was supposed to be a joke. But, I looked into that idea of preservation myself. I figured, hey, it's either that or not a chance of coming back after death. What I realized eventually is that it may not be practical. Not practical because of future medical issues or technology, but not practical because the Cryogenic company may not be in business long enough to revive you. Here is my reasoning: In the future, once all illnesses have been eliminated from the world, there won't be any need for anyone else to be preserved. People would be living forever. Therefore, there are no new customers getting frozen and generating revenue for the cryogenic company to stay in business. Without the income to pay for the buildings, machines, dry ice and maintenance for the company, they would go out of business. What happens to all the popsicles in storage? Not good!

[@tansuagrawal2349]

Good job

[@PhantomTrill]

you are awesome thank you so much

[@suwilanjisilwimba948]

Sir am so grateful for this lecture am kindly asking for the notes

[@blaisekasongo1775]

Perfect!

[@nonecker7479]

is the worth of the supplies calculated by the marked price or by the price you bought it?

[@jaayaustin336]

download a copy of this and ALL OF MY PROBLEMS

[@Tony-Bell]

Hahaha! I had to record that part 20 times and this was the best version - still sounds a bit funny eh?

[@chiragpanjabi7907]

hello, thank you for your videos sir. I am unable to access the PDF link

[@elliehomes]

Thank you!

[@plmoreno]

Hello Tony you do an amazing job explaining all of this concepts, thank you so much for doing this available for everyone 👏🏻👏🏻👏🏻 I only have one question on this video, is a car an asset or liability? I though was liability

[@Tony-Bell]

Definitely an asset - yes they cost us money, but they are things of value - if it's something of value, it's an asset. (you could sell one for money! It's valuable!)

[@plmoreno]

@@Tony-Bell understood, thank you so much for the clarification, your videos are so helpful!

[@yohane894]

thank you!

[@gimatakochomata1986]

Sir Please make the join option available in my country "Pakistan" as well.

[@amansantosh767]

Dear Sir, Can you also tell us about Book/s that we can follow for Question Practice and Good Theory!? Thanks for these awesome sessions ❤️

[@Tony-Bell]

I like this open and free textbook: open.umn.edu/opentextbooks/textbooks/215

[@amansantosh767]

@@Tony-Bell Thanks Sir 😊

[@hoangnhutnguyen3992]

I'm sorry, but I cannot download the pdf. Can you help me?

[@Cmoneyhoez]

you are awesome

[@srikantthseliyan3461]

Hii...your videos are great but I just wanted to ask a question...how can a car be an asset ??? Don't it depreciates in price in the long run ??

[@PunmasterSTP]

I think it is still an asset, and I think most assets depreciate over time. If you can sell something and get money for it, even if you'd have to lower the price over the years, it should still be an asset.

[@yashaswi024]

Professor, why does "phone bill" come under accounts payable instead of "Expense" ?

[@GauravKumar-yp7xq]

cause you haven't paid it yet and still a liability for you . you have to pay it /..

[@brackreif872]

Sir I have a question I'm a first year college just a freshman this part is the place I always fail how can I easily identify if it's a Long term or current this is where I always fail in my ABM in high school it's confusing to me

[@dailybikes668]

Hello professor unfortunately the link to the website " Accountingworkbook" is not working. Any help please!!!!!

[@Tony-Bell]

It's working for me - double check!

[@cbzombiequeen58]

When you join, members only, can the videos be downloaded, streaming is to costly?

[@Tony-Bell]

I don't think so...

[@Scenestop]

Thank you , is salary an expense or libalility?

[@isaacjoshuaaganon9337]

Expense because they are not owed but they are costs like labor cost so they became salaries.

[@edmondrothschild4969]

Tony bell sins you re real man🙋

[@SpiridonSpiridonovich]

What is the difference between Supplies and Inventory? Is inventory only LT while supplies are Short term? Can we use inventory for a Supplies section? Thanks.

[@Tony-Bell]

I treat them separately. Supplies is something you use up in your business - ie pens, pencils, paper. Inventory is something you are trying to sell. So inventory is what customers buy from you - supplies are the things you use to operate your business.

[@mohammadusmannoori596]

Hi Mr. Tony Bell how can I achieve members-only videos? I am from Afghanistan.

[@armandodepaz817]

😎🤙🏼 good stuff

[@lamyaash]

how about bonds (instruments) are they assets ?

[@Tony-Bell]

When a company issues a bond, they are borrowing money - it's a liability. When a company buys a bond, they call it "Investments" and it's an asset.

[@RealRonaldoR9]

North Dakota State University could use a good accounting professor, you should apply.

[@ireneabla3414]

Please are you a student in North Dakota University

[@K83b2]

Not sure if this is asked already, but why is Supplies considered 'Current' and not 'Long Term'? Is it because supplies generally will get used up within a year? We never take in consideration that there a some supplies that could be left sitting there for more than a year?

[@Tony-Bell]

That's it - generally when supplies are purchased you intend to use them within a year - simple as that. If you buy supplies with the intent of not using them for more than a year, it's long term, but why buy them now if you don't plan to use them? (It's possible, but unusual!)

[@K83b2]

@@Tony-Bell Okay. Thank you for responding. I tend to think too hard, with let's say a stapler. Could that be something that could be used for more than a year?

[@Tony-Bell]

For sure a stapler can be used for many years. So I'd be thinking of a stapler as "equipment" and the staples inside as "supplies". One last thing! When it comes to very small equipment (like staplers), most companies won't track them in the same way they would larger equipment like a car, computer or building. If it's below some amount (say $100), they'd treat it as an "office expense" or something similar...tracking something small as "equipment" is technically correct, but most companies will find it to be unneccesary.@@K83b2

[@israelalvarado9720]

Can someone please tell me . Why this formula is written this way? Assets = liability + equity. Why is there a plus sign when in reality you subtract the liability from equity ? Or am I wrong? Because if I add liability plus equity that gives me something else. Liability is debt that we have, why would I want to add that to my equity to get to my assets ??

[@ntsakisikhubayi3989]

Ease of convention.

[@joellekey6966]

What is the difference between "Salaries Payable" and "Salaries Expense"?

[@MariaVargas-co8rw]

I have the same question

[@roshellehussain1043]

Salary payable is it an asset or expenses ?

[@Tony-Bell]

Liability

[@danushkadilhan9741]

There is a small question...what is the difference between supplies and inventories. thanks

[@Tony-Bell]

Supplies are assets the company buys that it is planning to use (ie cleaning supplies/office supplies). Inventory are assets the company buys that it is planning to sell for more money - think Walmart. They buy inventory from wholesalers and sell to us for a higher price.

[@danushkadilhan9741]

@@Tony-Bell thank you verymuch sir

[@forever_golfer1981]

Is this a marketable skill?

[@PunmasterSTP]

I think if you want to work as a CPA (certified public accountant) or work in a position that requires at least a basic understanding of accounting, I would definitely say it's a marketable skill.

[@alexisstewart1915]

I think I love you

[@DavidPerez-yt]

I just don’t understand why cash is treated as a debit, like what exactly does debit stand for in that context and what does credit Stand for

[@ismailismaili0071]

I can't see the Join Botton

[@Tony-Bell]

Strange - it should be right beside the "Subscribe" button underneath each video

[@sohaibraoufy8401]

@@Tony-Bell I can not see either

[@Tony-Bell]

@@sohaibraoufy8401 Does this link work? kzbin.info/door/NFClg6mzfZ5ixpuH9c7f1Ajoin

[@adityatuladhar6722]

Some country doesn't have that feature including mine

[@amotekundev]

Who else is studying Accounting next month

[@PunmasterSTP]

Not me, but how did your class turn out?