#Youtube basic accounting lessons series#

Income statements are therefore intended to show how profitable a business was during that recorded period of time, not necessarily how much money a business took in during that time. If accruals are included in the income statement, then the revenue of a given week or month takes into account the invoices and bills that were sent out during that time, even if the money will not be collected until the next income statement's period. Revenue may include cash transactions as well as accruals. Revenue is the inflow of cash in exchange for goods and services earned over time -though not necessarily the money actually paid to the company over that period of time.The income statement is determined by two factors: the business's revenues and its expenses. It records a company's profit margins over a specified duration of time, ranging anywhere from one week to one year. An income statement is the most basic principle of accounting. Practice by working out how you would enter different common transactions, like paying your electric bill or receiving a cash payment from a customer.However, when liability accounts, like accounts payable, are debited, they decrease. This means that when asset accounts, like cash, are debited, they are increased.For the right side, the opposite is true. For the portion left of the '=,' debits increase the account and credits decrease it. It works as a sort of guide to debits and credits. This refers to a standard t-account journal in which records are made on either side of the vertical portion of the 'T'. Debit means the record goes in the left side of the t-account and credit means you should use the right side.Using them is relatively if you remember two things: These represent whether or not certain accounts are increased or decreased by a transaction. When dual-entry records are made, they are done in the form of debits and credits. Ittelson is a best-selling introduction to financial reports, and may be a good first step for learners interested in entering the field of accounting. Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports by Thomas R.The book also has the option of coming with a Quickbooks Accounting CD-ROM that can be invaluable for aspiring accountants. Scott is a widely used college textbook for accounting and financial management courses. College Accounting: A Career Approach by Cathy J.Introduction to Accounting, by Pru Marriott, JR Edwards, and Howard J Mellett, is a widely used introductory textbook that is considered an excellent primer for both general education purposes as well as for learners who intend to specialize in accounting.Look for entry-level books written by authors who have experience in accounting, as these books will be more likely to contain researched information. Visit your local library to find books on accounting, or purchase a book from the bookseller of your choice. This article has been viewed 420,856 times. This article received 22 testimonials and 91% of readers who voted found it helpful, earning it our reader-approved status. WikiHow marks an article as reader-approved once it receives enough positive feedback. There are 14 references cited in this article, which can be found at the bottom of the page.

#Youtube basic accounting lessons series#

Ara has a BS in Accounting and Finance from San Francisco State University, is a Commissioned Bank Examiner through the Federal Reserve Board of Governors, holds the Chartered Financial Analyst designation, is a Certified Financial Plannerв„ў practitioner, has a Certified Public Accountant license, is an Enrolled Agent, and holds the Series 65 license. Department of the Treasury, and the Ministry of Finance and Economy in the Republic of Armenia. He has previously worked with the Federal Reserve Bank of San Francisco, the U.S. With over 26 years of experience in the financial industry, Ara founded ACap Asset Management in 2009. Ara Oghoorian is a Certified Financial Accountant (CFA), Certified Financial Planner (CFP), a Certified Public Accountant (CPA), and the Founder of ACap Advisors & Accountants, a boutique wealth management and full-service accounting firm based in Los Angeles, California. This article was co-authored by Ara Oghoorian, CPA.