How Do Companies Record Business Transactions? (Part 1)

Companies engage in several types of transactions, from raising funds – through equity and debt – to making investments or purchasing goods or services and – hopefully – selling products and services. How do we record these transactions? Are all transactions relevant from an accounting point of view? Before watching the video, try to think about some important decisions or operations a company engages with, and try to guess whether it is relevant from an accounting perspective. A few hints may help: is hiring a CEO relevant? and buying a new plant? or investing into stocks of other companies? And purchasing a license?

The aim of this and the following video is providing you with an overarching logic to discern accounting relevant from irrelevant transactions.

You can find attached below the slides in pdf version we are presenting during the video.