Financial Statements Explained

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I explain the basics on balance sheets and income statements using an example business. I also explain all of the following: Assets, Equity, Liabilities, Accounts Receivable, Notes Payable, Accounts Payable, Prepaid Expenses and more.






50 responses to “Financial Statements Explained”

  1. Abdullah Asiri Avatar

    Tobby is that you ?

  2. Deepak Sharma Avatar

    thankyou for this video .

  3. ExoticEgyptianBeauty Avatar

    very well explained, you're a life saver!

  4. Rakshith Anchan Avatar

    sir tell little louder please i love it

  5. Mom Vo Avatar

    my knowledge is quite rusty but i managed to follow by the means of some pause/rew/play ๐Ÿ™‚ but this was quite a handy recap, kudos!!

  6. Max Dmytriyev Avatar

    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.

  7. Infirenza Avatar

    our teacher sucks

  8. Elfie Weimar Avatar

    Can anyone recommend research paper writing company?

  9. Languages Services Abroad Avatar

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

  10. Michael Shelton Nagbe Avatar

    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

  11. ๆŽๆ˜Ÿๆ˜Š Avatar

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

  12. Keith Clark Avatar

    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

  13. Korleen Edmond Avatar

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

  14. Aristo Mills Avatar

    Wonderfully produced. Thank you.

  15. Rafael GS Avatar

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

  16. morgan spearen Avatar

    great video but please sllloooowwww down!

  17. cargouvu Avatar

    Where are practice questions available?


    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?

  19. anup phadke Avatar

    I got your answer and also following your website now I have one more question.
    Why Income statement donโ€™t tell whole story ?

  20. Syrel Lace Avatar

    derek i want to inrol how

  21. Barbara Gudith Avatar

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

  22. fliptthescript Avatar

    don't understand it

  23. Cynthia Rodriguez Avatar

    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!

  24. Fay Todd Avatar

    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?

  25. clw8309 Avatar

    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. ย 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.

  26. Cristian Curiel Avatar

    Your videos are epic! You're videos explain the most important things, in a short amount of time. Very convenient! ๐Ÿ™‚

  27. Sandokan100 Avatar

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

  28. Sandokan100 Avatar

    This subject Accounting just like Computer Science (the computer Programming) canย  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 reallyย  complex and often makes a student as well as teachers( I had couple of teachers )ย  confused. Finally , with tremendous perseverance , basic interest in the subject ,rigorous practice you can become aย  chartered accountant .

  29. JD Avatar

    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.

  30. InstTaxSolutionsLLC Avatar

    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.

  31. Derek Banas Avatar

    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

  32. Herp Derpingson Avatar

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

  33. Derek Banas Avatar

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

  34. Derek Banas Avatar

    Thank you ๐Ÿ™‚

  35. Herp Derpingson Avatar

    Are you sure you are ISTJ? You behave more like an xNTx

  36. Herp Derpingson Avatar

    We are barely taught anything in school. Derek rocks.

  37. Derek Banas Avatar

    I'm very happy to have been able to help ๐Ÿ™‚

  38. Warsha Laxmidevi Avatar

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

  39. Derek Banas Avatar

    You're very welcome ๐Ÿ™‚

  40. MsDallia91 Avatar

    Thank you soo much.

  41. yapnop2 Avatar

    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 ?

  42. Derek Banas Avatar

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

  43. shakib ishfaq Avatar

    Owners equity the same as saying capital?

  44. Derek Banas Avatar

    Thank you ๐Ÿ™‚ That was the goal. I'm glad you liked it

  45. Tatiana Ferreira-Black Avatar

    Thank you very much, I am not an accountant and I am understanding what you are talking about. ๐Ÿ™‚

  46. Tenziano Avatar

    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

  47. Derek Banas Avatar

    You're very welcome ๐Ÿ™‚

  48. nadia fakih Avatar

    Thanks so much for this….very helpful

  49. J Abad Caldeiro Avatar

    Thanks for this video. Very useful.

  50. Derek Banas Avatar

    @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

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