Getting familiar with assets and liabilities
An asset is a resource available to the firm that is expected to generate future economic benefits (future cash inflows or reduce future cash outflows) An asset is recognised upon …
Course: Introduction to Financial Accounting
Introducing the accounting identity
In this video, we introduce the Accounting Identity. The accounting identity is a key criterion underpinning accounting logic. It helps to signpost and check whether we are on the right …
Adjusting entries at work
Adjusting entries are accounting journal entries that convert a company’s accounting records to the accrual basis of accounting. An adjusting journal entry is typically made just prior to issuing a …
Disentangling accounting principles
Basic accounting principles and guidelines govern the field of accounting. These form the foundation for more specific and detailed accounting rules. Accounting principles are the rules and guidelines that companies …
Assessing income: revenues and expenses
A fundamental role of accounting is identifying revenues and expenses. These differ from cash inflows and cash outflows. Think about the following problem A company buys properties downtown and pays …
Farewell
SUMMARY Here we are – we just hit the end of our journey. It is now time to reflect on what you have learned and celebrate your achievements! If you …
Closing the Books at the End of the Year
This Step In this video, we will guide you through an essential step in financial accounting: how do companies reconcile and summarize thousands of transactions and make sure of their …
Towards Financial Statements: Income Statement and Balance Sheet
This video is the last leg of activity 3 in week 3. It is fairly lengthy and you may want to consider pausing towards min 10, after all the adjustments …
Accounting for Accruals and Deferrals at the End of the Period
In this video we tackle the fundamental accounting problem of deferrals and accruals identified at the end of the period. We will continue building on the Food-on-the-Go case in order …
The Trial Balance and Adjusting Entries
In this video we will move from the Trial Balance we construct at the end of the period, prior to all the adjustments, towards financial statements. In order to do …
Recording Transactions with Double Entry Bookkeeping
And now let’s see double entry bookkeeping system in action: recording transactions using the accounting method!
The Accounting Method: Double Entry Bookkeeping (Part 2)
Now that you have finished viewing two videos on double entry bookkeeping system, you may wonder why we always need two ‘aspects’ or sides to be taken into account. Why …
The Accounting Method: Double Entry Bookkeeping (Part 1)
In Week 2 we focused on how to measure performance and the substantial aspect of valuation and recognition of revenues and expenses. In Week 3 we will finally embrace the …
Introducing the Accounting Identity
In this video we introduce the Accounting Identity. The accounting identity is a key criterion and underpinning to the accounting logic. It helps signposting and checking whether we are on …
MediaMax – Part 2 (Solutions)
It is now time to pause, review and reconceptualize what you have done in relation to the MediaMax case (part 2). The video intends to offer you a guidance (ex …