Financial Statements Explained

[@carscoffeeandmischief]

9 years after this video was uploaded and is still amazing the way you explained it. Thanks!!

[@derekbanas]

Thank you for the nice compliment :)

[@derekbanas]

Capital is the total money put into a business at the start. Owners Equity is the asset value after liabilities have been paid

[@derekbanas]

I'm very happy to have been able to help :)

[@InstTaxSolutionsLLC]

One thing that accounting and business students should know is that the financial documents they learn of in the earliest of accounting courses, will be used throughout their accounting and business careers.

[@derekbanas]

Thank you :) That was the goal. I'm glad you liked it

[@fiveminutejourney]

Very helpful and simple explanation of the financial statements

[@Zacksproductions1]

That was VERY understandable! I am watching this an hour before my test as a quick refresher and it was very easy to follow and made me understand things better. Great video!

[@derekbanas]

That's great ! I'm happy to be of help :)

[@AdrianLawrence]

Thank you - you explained about balance sheets in a helpful and clear way.

[@derekbanas]

Thank you very much :)

[@gimeibarra3899]

I have a test tomorrow and this explanation really helped me understand everything about accountings. Thank you so much!

[@derekbanas]

I wish you the best of luck on your test :)

[@gimeibarra3899]

Thank you so so much!

[@kiwon1974]

I couldnt leave this video without saying: Thank you very much!

[@derekbanas]

You're very welcome :) Thank you for taking the time to tell me it helped

[@vhsonacomeback]

Thank you so much. I'm going to use this so much while studying for the CFA exams.

[@ForgottenAngel29]

I'm back in school getting my MBA and have never taken an accounting class before. Just started Monday and was feeling overwhelmed. Thank you for creating this video! (A decade late, haha)

[@derekbanas]

I'm happy it helped :) I wish you the best with college

[@momchil14]

my knowledge is quite rusty but i managed to follow by the means of some pause/rew/play :) but this was quite a handy recap, kudos!!

[@derekbanas]

Thank you :) I'm glad you liked it

[@anna_6422]

Thank you so much for this explanation! I find it more useful than my university lectures

[@derekbanas]

Thank you :) Happy I could help

[@vattakaya100]

This is a wonderful explanation of Financial Statements . I would like to thank you for this great video tutorial. I wish I have these kind of teaching in Accounting . Fantastic video !! Take a bow!!

[@warshalaxmidevi7470]

Thank you so much! It's wayyyyyy more clear than how my professor teached us.

[@derekbanas]

@zippydeeify You are right. Always trust what you see in the presentation. I sometimes miss speak. I'm glad you found it useful. It's just a basic overview

[@clw8309]

I have a REALLY hard time with this and you did a good job but I wish you could have gone slower in order for me to absorb all the information at once, because it is A LOT of info. I've watched this video a few times and it's started to sink in. I'm taking a finance class and my text book is awful, so this really helps.

[@derekbanas]

Thank you :) I'm glad if it helped. Sorry about the speed. I have tried to get better at making the videos over the years.

[@leadusmagwagwa7520]

Derek Banas great video excited to see part 2

[@derekbanas]

I think I'm more of a Sensing instead of an Intuiting person. I change my mind about things all of the time. All I require is enough facts. As odd as it may seem, I don't trust my gut reactions all of the time. I think it is because of knowing how easy it is to change a persons opinions

[@derekbanas]

I'm definitely a recipe follower. If I'm not able to follow my personal plan I go nuts.

[@yapnop2]

Dear Sir I would like to thank you from the bottom of my heart for your time and effort to produce such a wonderful and useful online material. I have 3 questions:- 1) look @ "Time to expand" slide, can we put at asset column cash 300$ and 50$ finished good, if it's permissible, can i put at income stat. end Invent. 50$ ... 2) 1 slide after .. Confusion strikes on how to extract nos. at income stat. (total available for sale) (end Inven.) 3) What's the maths for (150$)-Retained Earnings ?

[@yenomeerf]

Wonderfully produced. Thank you.

[@derekbanas]

+me still me Thank you very much :) Your welcome

[@cristiancuriel5362]

Your videos are epic! You're videos explain the most important things, in a short amount of time. Very convenient! :)

[@derekbanas]

Thank you very much :) I do my best to cover everything as quickly as possible. I'm glad you like them

[@cablaylock]

Great video. However, you mentioned two different types of owners - liabilities and owners' equity. Liabilities is not an ownership claim - people the business owes are not owners, they are debtholders.

[@herp_derpingson]

We are barely taught anything in school. Derek rocks.

[@julianr6430]

oh my gosh. YOu cover java you cover c you cover financial statements . Respect! You helped me out a lot

[@derekbanas]

Thank you :) I'm happy the videos helped

[@Raeb222]

Thank you. I will be back. Just beginning my studies in Bookkeeping.

[@tatianaferreira-black4844]

Thank you very much, I am not an accountant and I am understanding what you are talking about. :)

[@cynthiarodriguez1334]

This video was great! But I have a few questions if you dont mind me asking. At 8:28 you are going over inventory in the assets side of the balance sheet, but I dont understand why raw materials is $0 if we spent $150. I understand how finished goods is $25, just not how raw materials is $0 I also don't understand how/why retained earnings is $150. How did you calculate that or get the number? At 9:30 I begin to get a little lost when you explain the cash. How did you get $465? Other than that, I absolutely LOVED this video! Very helpful and informative. Thank you!

[@tonyd.907]

Was watching this after a tiring day, and near end at 8:56 after partially zoning out, I wondered why there was a small bug on the lower center of my screen. Went to wipe it off.....then soon discovered it wasn't a bug, it was the narrator's mouse pointer..... LOL !

[@ExoticEgyptianBeauty]

very well explained, you're a life saver!

[@derekbanas]

Thank you :)

[@derekbanas]

@almichel888 You're welcome. I'm glad you found it useful

[@sunnny119]

Amazing video

[@MusicademyMcAllen]

I agree that you go a bit fast but I think it's a good thing. I'd rather pause and replay parts than sit through explanations that I don't really need. Jumping past slow explanations means you might miss important information.

[@derekbanas]

Thank you :) I do my best to make original content

[@hayaq9991]

I seriously expected a financial statement to be a sentence or two.. smh.. thank God I'm learning this now before my business opens up

[@derekbanas]

I'm happy I could help :) I wish you the best of luck with your business as a fellow business owner.

[@diontaedaughtry974]

Thank you this was very helpful and informative 👍👍

[@derekbanas]

I'm happy it helped :)

[@derekbanas]

@gooseCha Thank you for taking the time to show your appreciation. Feel free to pass along any questions and I'll do my best to answer them

[@derekbanas]

@valentino3321 Yes I know I went pretty fast. I plan on trying to explain this stuff in a better style soon. Thank you for your ideas and I'm glad you liked it :)

[@Romulus623]

Great explanation, especially since I'm about to take acct 556 MBA

[@derekbanas]

Thank you :) I'm happy it helped

[@almichel888]

Amazing, thank you very much for posting this very useful stuff.

[@estrellitosanchez7386]

im lost at 9:35. you have said you are going to add the accounts receivable in earnings wk. ending which is $50. The amount of ewtd is $260 + the $50 accounts receivable so it should be $310. but your balance sheet only shows $285? how is that happened?

[@elili9378]

Thank you. I really learned something from the video. I anticipate some animation added can be more helpful.

[@shawnp4714]

Only thing I would suggest is add a little window of the previous screen so someone can follow easier but good video

[@derekbanas]

@vhsonacomeback You're welcome. I used to be a CFA.

[@derekbanas]

You're very welcome :)

[@derekbanas]

@ajithlondon I wouldn't think they would be different, but I can't be certain. The only changes would occur in relation to tax code rules in regards to depreciation.

[@jaime_abad]

Thanks for this video. Very useful.

[@majog7868]

Amazing video! Thanks

[@derekbanas]

Thank you :)

[@michaelsheltonnagbe5456]

I will need to understand this. How come the total asset and liabilities is $200. Did you say he had $100 as an initial investment and his uncle lend him $100. I really want this explain for me, please

[@indianajones9386]

Thanks great video

[@derekbanas]

Happy you like it 😁

[@Rayraydagoat152]

Thanks so much for this....very helpful

[@rakshithanchan5038]

sir tell little louder please i love it

[@valentino3321]

I understand that all the math should be common sense but when you explain the process and leave out one detail, it could frustrate someone who doesn't understand. example: What are the goods he's selling so I can understand caricature. Since $50 in inventory produces 50 caricatures, that would mean the cost of goods sold would be $40 because he sold 40 units. Just a thought. Great job BTW!!!!

[@derekbanas]

Thank you :)

[@LibertyOrGTHO]

i can not understand why something that COSTS money would go into assets and not liabilities.

[@faithfj]

Great job thank you. I have a question, why are you putting the earnings in the same column as liabilities? why net income is a liability?

[@zippydeeify]

@derekbanas Thanks again! Thanks for your generosity in sharing your knowledge. =)

[@deepak2009sharma60]

thankyou for this video .

[@derekbanas]

I'm happy it helped :)

[@zippydeeify]

Hi. Thank you for posting this. I have a question though. When the business owner sold the celebrity pics to his friend for $50, then retained earning should have increased by only $25, right (acknowledge that in the balance sheet, you only increased it by $25, but verbally, you said $50)? Also, please re-confirm that if the friend did not pay for the celebrity pics, then retained earnings should decrease by $50?

[@RickyJogging]

So far I am confused about one thing... On the "Second Week in Business" Slide 7:34 it shows that we spent $240 on mall space and $150 on raw materials... This adds up to $390 but we only have $350 in cash in our asset column so far. Are we using our cash to fund these expenses or are they just a random example? If anyone can help me out with this I thank you in advance.

[@herp_derpingson]

The making and executing personal plan comes from Te All xxTJs love to make and follow personal plans. Including me.

[@dioramour]

9:23 I don’t get what you did with the Prepaid Expenses? Why did you have to split it i to the balance sheet? Did you split it? And why did you specifically put it Cash, AR, Earnings Week Ending?

[@anoopphadkke24]

I got your answer and also following your website now I have one more question. Why Income statement don’t tell whole story ?

[@phoeNYkx]

Simple example. Let's say a profit of 1000 dollars doesn't mean your business is doing well. You need to see the bigger picture using Balance Sheet and a 1000 $ profit doesn't mean you've cash of 1000 $ with you. That's where cash flows come in. You can't sustain if you're dealing with negative cash flows.

[@Max15tz]

on the "last development" slide you say you add $50 on eanrings week ending but where do we get this previous week ending earning figure from, because the only one i see is $260 and only thing to add that will result in the same figure is 25 of finished goods from previous table.

[@faizahcruz2938]

Thank you so much for this video, it helps me a lot......But please make it a little bit slow when u explain thanks again.

[@derekbanas]

I'm glad it helped :) Sorry about the speed

[@faizahcruz2938]

@@derekbanas Sir. So much thank you for this, it is really a big help for me. God bless u!

[@sophewan2219]

What is unconsolidated financial statement?

[@keithclark1875]

Just a comment. You seemed rushed to me and it was difficult for a novice like me to keep up. Just trying to be helpful. Thanks

[@derekbanas]

Sorry about the speed. I tend to go to fast some times

[@momchil14]

Keith Clark youtube has provided you the option to manipulate the speed of presentation, the dude is simply super efficient :) good job

[@barbaragudith6605]

Please explain why you placed Prepaid Expenses in or under Inventory.

[@MasterTheShit]

+Barbara Gudith I know it is late but here it goes. prepaid expenses are classified as assets because they did not "incur" yet. so let's say you have an annual insurance policy which costs $1,200, at the beginning of the year you would classify it as an asset and as each month goes by you would expense $100 to the income statement. hope this helped.

[@joaop.1238]

Hi, I'm confused about "Earnings Week Ending". Why is that equal to the profit from the sales and why is that a liability?

[@ezikeobumneke6788]

very good

[@derekbanas]

Thank you :)

[@MsDallia91]

Thank you soo much.

[@vhsonacomeback]

@derekbanas Why would you ever stop being one? Also, I haven't watched fully through the videos yet, I'm signing up for the exams when I come back from army officer candidate school. Are there any other videos that you recommend that I watch? Study tips would be greatly appreciated.

[@nickfleming3719]

Does this include the cashflow statement, that's all I care about

[@Tenziano]

i didn't get it?? 9:33 how did u adjust the asets part? could u be more clear pls specially abt the cash and account receiveable ..

[@Osky305]

I told this girl what a balance sheet and she immediately took her clothes off after 😎

[@nsukucredence1884]

haha😂

[@johanneszwilling]

Thaaaaank you!!

[@derekbanas]

Happy I could help :)

[@elfieweimar977]

*Can anyone recommend research paper writing company?*

[@derekbanas]

Sorry, but I don't know any

[@barbaraostendorf7906]

Ordered my essay at *essay.itg0.all-about.in*. *I have been pleased with the results.*

[@topfinancialanalystsedu867]

Hello Elfie Weimar. If you need tutoring, consultations, business reports and essays on finance, then never shy from contacting my team of freelance educators. We are able to guide you through different phases of finance world. Help you graduate with knowledge and good grades, guide you through your career and help you in personal finance and/or your firm's finance. Contact us on [e-mail] and add us on hangouts.

[@dares.3002]

Just wonderful, been searching for "free financial planning tips" for a while now, and I think this has helped. Have you ever come across - Ferapt Freedom Fanboy - (search on google ) ? Ive heard some unbelievable things about it and my colleague got cool success with it.

[@Never3ver4get]

Thank you

[@derekbanas]

I'm happy it helped :)

[@cargouvu]

Where are practice questions available?

[@vattakaya100]

This subject Accounting just like Computer Science (the computer Programming) can drive a person absolutely insane.After having watched so many Accounting teachers & students you cannot master this subject without super command in the very rudimentary basic journals ( you can't succeed in Accounting without mastery in journals ( similar alphabet in English ) to the utterly complicated financial ratios . The derivatives of financial statements the financial ratios can make your brain burst .I thought this subject wasn't as boring as Computer Programming I was wrong this was even more boring shit. The terminology in Accounting is also really complex and often makes a student as well as teachers( I had couple of teachers ) confused. Finally , with tremendous perseverance , basic interest in the subject ,rigorous practice you can become a chartered accountant .

[@lalaithan]

LOL, I left accounting for coding.

[@error.2688]

Indonesia.

[@PAPowerHouse]

2:30 Why separate the "Sales" from "Cost Of Goods Sold" ?

[@PAPowerHouse]

Are Sales and Goods sold not the same?

[@Ugaritic]

Hey You

[@ajithlondon]

Sir, are these rules different to the accounting standards used in the United Kingdom and other Commonwealth Countries?

[@derekbanas]

@vhsonacomeback That's pretty much all I've covered on financials. I have a video on how to invest using what is called covarience analysis. I quite because my research tools stopped working in 2006. Then everything blew up. I was more like an analyst than a broker. When I decided I could no longer provide good advice I got out. That is the very short answer. I wish you the best :)

[@TheShak12345]

Owners equity the same as saying capital?

[@yelitzadiaz2182]

Had to watch a few times to grasp the info. Please slow down, it's a lot of info to take in at once.

[@languagesservicesabroad457]

What does EWTD stand for? I understand the EW part but not the TD one. Thanks.

[@stan9011]

To date

[@EdgarMnatsakanyan]

download an example sheet here: delicateit.com/docs

[@kory12494]

Any chance this is available as a powerpoint or a printable?

[@derekbanas]

+Kor Christine Sorry, but I don't have the slides. Feel free to screen capture them though

[@strangesniper007]

Which software did you use to make this video?

[@derekbanas]

Camtasia 2 and iMovie

[@morganpetitte6671]

great video but please sllloooowwww down!

[@rawsip5037]

Yeah I agree

[@PhongTran-qv6kd]

You can use settings to change the speed

[@josephwhite9628]

lower the playback speed to 0.5x its sounds like his had a stroke but makes it easier to follow what he's saying.

[@sai01126]

derek i want to inrol how

[@fliptthescript]

don't understand it

[@voyagerstanley1020]

Can watch this as well: kzbin.info/www/bejne/noTdlWhsp7h1psk

[@AbdullahAsiriPlus]

Tobby is that you ?

[@derekbanas]

No this is not Tobby :)

[@AbdullahAsiriPlus]

Derek Banas sorry. But great material there really. Thanks for posting them

[@dad4378]

Hi why are you talking to yourself?

[@derekbanas]

KZbin messed up the comment system. I was answering peoples questions, but they broke them apart because of a bug I'm guessing

[@derekbanas]

You're very welcome :)