Introduction
Introduction to bookkeeping00:02:17
The language of business00:02:30
How can we collect all this information?00:04:12
What you should know00:00:39
Review of the Financial Statements
Introducing financial statements00:01:38
The balance sheet00:02:45
The income statement00:03:10
Four Steps in the Bookkeeping Process
The importance of routine bookkeeping00:02:06
Analyzing transactions00:02:42
The accounting equation00:03:31
Using accounts to categorize transactions00:02:39
Debits and credits00:02:30
Examples of accounts to categorize transactions00:03:30
Including revenues, expenses, and dividends00:03:12
Words of caution00:02:04
How Transactions Affect the Accounting Equation
Everything is recorded with debits and credits00:03:10
How do we record the effect of a transaction?00:01:34
Obtaining financial and buying equipment00:03:38
Buying supplies and inventory00:03:16
Providing services00:02:48
Selling inventory and providing services00:03:42
Incurring additional expenses00:02:35
Paying interest and dividends00:02:50
A note on journal entries00:02:58
The General Ledger
The accuracy of debits and credits in the days of real “books”00:03:17
Posting journal entries to accounts00:04:19
Illustration of the First Three Steps in the Accounting Cycle
Strangers and the power of financial statements00:02:43
Analyzing transactions00:03:56
Computing account balance00:02:59
The financial statements00:03:34
Conclusion
Who uses financial statements?00:03:14
The role of computers00:03:44
Where we have been and what is next00:02:31