The KEY to Understanding Financial Statements

🆓Expanded Accounting Equation Cheat Sheet → accountingstuff.com/shop
🖊Income Statement Practice Questions → accountingstuff.com/practice-...
In this video I'll share the key to understanding Financial Statements. You'll learn the relationship between the Balance Sheet and the Accounting Equation, and where the Income Statement fits into the big picture of Accounting.
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⏱️TIMESTAMPS
00:00 - Intro
00:16 - Financial Statements Definition
00:35 - The Accounting Equation
01:16 - The Balance Sheet
02:16 - What is Equity made up of?
02:29 - Capital Contributions Definition
02:47 - Retained Earnings Definition
03:03 - Profit Definition
03:27 - What are Retained Earnings made up of?
03:50 - The Expanded Accounting Equation
05:08 - The Link between the Balance Sheet and the Income Statement
05:57 - Outro
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#accounting #financialstatements #accountingstuff

[@mubarekdaha]

A 2 hr lecture in 6 minutes

[@andisanontobekomngadi7076]

And it wasn’t boring

[@MidtownJack]

Not the hero we deserved, but the hero we needed. Keep making these grade saving videos my man 🙌

[@r3aper324]

This might be my last accounting paper tomorrow as I'm dropping the subject next year, accounting never was for me and I was forced to take it. Although through all papers you were there to help me understand. So if this is the last time I see one of your videos, thank you from the bottom of my heart ♥️

[@AccountingStuff]

Best of luck with it! All the best with your future endeavours :)

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I also had the same situation but at last I fall in love with accounting subject 🥺

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I think it is too late for me to drop :(

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@@saraelh9724 too late for me to drop out too 😭

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Your videos have a knack for coming right when I need them, which makes them even better!

[@AccountingStuff]

Thanks Benjamin, hope it helps!

[@siphesihlentuli7347]

Imagine having James as your accounting lecturer 🎓

[@ultralegendarybeast101]

Definetly!

[@jamesfleming5292]

That would be awesome

[@rasulsamad5860]

He is watching all his videos

[@gainsjames9345]

I wouldn't have been so scared of accounting if He were to be my lecturer 😄😄

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No he is too handsome for being teacher, will not be able focus then 😂

[@sveng05]

I have a class tomorrow and this totally saved my life! Thank you James!

[@areen6179]

I don't think you'll ever get a teacher like this, be grateful he started uploading on CZcams!

[@HectorGarciaCPA]

The editing is on point.. cheers!

[@AccountingStuff]

Thanks Hector!

[@jalentrent5863]

instablaster...

[@ultralegendarybeast101]

@@AccountingStuff :)

[@carubinkumarsarkar]

Being in accounting since 2017, I can say this is the best & crisp video on this topic
Keep up the good work...

[@AccountingStuff]

Cheers Rubin!

[@KyleJacob90]

These videos are seriously helping me. Since my professor loves you and is the one that recommended these videos and does every week, he doesnt mind that I chime in occasionally during his lectures to explain parts myself bc i had learned from these videos. For real love these!!

[@michellehightower6316]

I seriously can’t thank you enough for your videos! I am a healthcare professional working on my MBA in healthcare administration, and I am NOT a numbers person. I was so lost reading through my textbook, but your videos have made a huge difference! I feel confident that I can pass my course now.

[@niloykarmaker1024]

You are LIFE SAVER .....have an exam tomorrow.
Also after a long time. Remember me?

[@AccountingStuff]

How could I forget? It's been a while. Best of luck tomorrow!!!

[@niloykarmaker1024]

@@AccountingStuff thanks ❤️ and keep uploading.. 🔥

[@AccountingStuff]

@@niloykarmaker1024 Cheers! Will do :)

[@nab-rk4ob]

I don't think I could jump back into the accounting world without you. Many thanks. 👏👏

[@mdf3605]

you were born to do this- AMAZING, James. thank you!

[@AccountingStuff]

No worries, happy to help!

[@boxovitch5218]

Thanks to your videos I’m studying to be an accountant. I would like to see a video on present and future value as well as a video explaining annuity. Keep doing what you’re doing and thanks for all the helpful content!

[@AccountingStuff]

That's great to hear! Thanks for your requests :)

[@imibelle123]

Thank you for this! I appreciate so much having access to this kind of quality material to support what I am learning from textbooks and lectures. :)

[@niko-ni6ps]

Ur channel are wonderfully underrated. I could feel dedication that uve done in this video

[@AccountingStuff]

Thanks buddy!

[@libertadconobjetividad5550]

For spanish speakers:
Asset: Activos
Liabilities: Pasivos
Equity: patrimonio

[@kellieselway5365]

Your videos are pure GOLD. Going through my exams now and I cannot begin to tell you how much your videos have helped me. You articulate your words so well and explain everything so clearly. Pleaaase, keep it up!

[@AccountingStuff]

Thanks Kellie! Best of luck in your exams :)

[@jennymulhall816]

I wanted to thank you, James. I got into ATI Year 2 thanks to your videos. I told my whole class about DEALER and your channel. Thank you! x

[@AccountingStuff]

Nice one!! Great to hear that things are going well. All the best :)

[@jennymulhall816]

@Get More Of course I’ll help if I can, but I’m only in second year! You’d better ask James. ☺️

[@jennymulhall816]

@@AccountingStuff Thank you so much! 🌸🌸🌸

[@AccountingStuff]

@@jennymulhall816 You're welcome :)

[@steevphiri7783]

You make account understandable. . Thanks the your work

[@AccountingStuff]

Cheers, I'm glad to hear that!

[@ericvedwards]

This is amazing! I'm taking accounting for the first time ever and your videos are extremely helpful!!!! Thank you so much for the cheat sheet. This week my lesson is on balance sheets and income statements so this is perfect! Thank you again. I've actually told a few of my friends about this as well. :) Cheers!

[@AccountingStuff]

Thanks for sharing! All the best with your studies :)

[@kirstygascoigne8806]

I wish I had found you 6 months ago! Brilliant, thank you

[@AccountingStuff]

Glad you're finding the vids useful :)

[@AlluringSpy]

Thank you for doing this James! Your channel is amazing, your production value is so good and the way you explain this makes learning it so addictive. Best of luck to you!

[@AccountingStuff]

Cheers for your support!

[@1610Nepenthe]

Hey James, I landed on your channel after perusing CZcams for some simple and to the point explanations for accounting principles, as I have a short sub-unit dedicated to accounting basics within the syllabi. I've only just begun learning but thank you so much for the videos you've put out. I always thought I'd have to mug it up and take my chances (hahaha) but you've managed to make me understand to a far greater degree and I look forward to watching more of your videos!!

[@AccountingStuff]

Great to hear it's clicking for you!

[@heatherd1509]

I love and so appreciate the explanations you provide. I have been in the accounting field for years, with tons of education under my belt, and while I am embarrassed to admit it... With your insight, it’s all finally starting to come together. Thank you!!

[@AccountingStuff]

No worries Heather! We all have to go back to the basics from time to time. It's so easy to get 'tunnel vision' at work and lose sight of the big picture. All the best!

[@ouassimaissani4413]

very short, fruitful and easy to understand. thank you so much of your efforts

[@Ajay652]

Missed u for a long time....

[@alliesteamc3546]

Great job in describing the process!

[@rachelh4524]

This is the best explanation of the extended accounting equation I’ve seen! Your videos helped helped me pass my first CIMA exam so thank you! Were you planning to ever do some Management Accounting ones - probability, regression analysis and normal distribution etc. your style of videos for these topics would no doubt help a lot of people studying!

[@AccountingStuff]

Hey Rachel, congrats on passing your exam!!! That's awesome news. I plan to cover Management Accounting as well but I have a few more vids on Financial to make first

[@romaamore2469]

I love how you explain it and make it super interesting! 👍🏻💗

[@fanilo95]

Super helpful and informative, thanks a LOT !

[@euridicecosta5887]

I just found your channel today, and you explain accounting so clearly... keep the good work and the quality is on point!

[@AccountingStuff]

Cheers Euridice!

[@francosannan4681]

I am an IT Manager, and i am using your Playlist Video to understand the whole accounting Picture
Thanks a Alot

[@AccountingStuff]

Great to hear you're finding these videos useful :)

[@collincox5315]

Hi James,
You're a real one.
I'm a Business Admin major and am taking an Accounting course this semester. I find the textbook to be really dense, uninteresting, and as a consequence, hard to follow. You have made learning accounting so much easier and much more enjoyable. Thank you!

[@AccountingStuff]

Cheers Collin! Glad you're enjoying it :)

[@emilyb7867]

James, I really hope your channel booms in popularity! I am an accounting student and your videos are so informative, with the perfect explanation and great editing!

[@AccountingStuff]

Thanks for your support!

[@samasemo163]

please don’t stop making these videos your are literally saving my career!

[@AccountingStuff]

I plan to make a whole lot more :)

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Really you are making every time difficult concept easy. Thanks a lot

[@AccountingStuff]

Cheers Priya!

[@peterliao6045]

Hey man, missed your content and this came right in time before my finals. Learned how to debit/credit and all else with your video which made my university modules much easier to handle. Hope everything is doing well for ya, love from Singapore

[@AccountingStuff]

All the best in your finals!!

[@kevinflynn5052]

You're the best, James! I look forward to more videos in the future!

[@AccountingStuff]

Cheers Kevin! I'm working on many more :)

[@inspiramind5445]

This is a great video. I will use it as part of my teachings which, I believe, will bring a lot of visitors to this video.
Thank you! 😊👍👍👍

[@Roblox_Raya877]

Honestly sooo helpful and easy explained! Keep going

[@AccountingStuff]

Thanks!

[@DA-nu1ci]

Your videos are extremely helpful. Thank you so much!!!

[@AccountingStuff]

No problem Danni :)

[@agermoune]

Retained earning is the key to link Bal sheet to the income statement! Love it.Excellent visualization to make hard looks was.You have got talent

[@AccountingStuff]

Thanks for your kind words!

[@fratboyfaith]

i can actually pass my accounting class all thanks to you! THANKS JAMES xx

[@AccountingStuff]

Good luck with it! I hope you smash it

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Good learning with you bro!

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Been waiting for a new post, and this helps me alot to understand accounting better!

[@AccountingStuff]

Cheers Tita, that's great to hear!

[@AlignacademyTV]

Hey James
I appreciate how you break down accounting principles for non-accountants like some of us
Please keep up the great work!

[@AccountingStuff]

Thanks Winston!

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@@AccountingStuff I need some help with my accounts assignment please😫🙏🙏... Just one question please. Can you help me out?

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Great job James. Keep doing! Greetings from Europe.

[@AccountingStuff]

Cheers Besim! Will do :)

[@ruidias2773]

Just saved me a lot of back and forward studying! thanks man

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Just started my accounting course and your videos are helping out a ton!

[@AccountingStuff]

Cheers, glad to hear the vids are helping. Best of luck with your course!

[@dimitarbushkalov2380]

Awesome video man, thank you. Always struggled to link the P&l to the equity part of balance sheet

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You have a beautiful, clean website. Kudos man. I swear when my money game is up I'll support the page.

[@AccountingStuff]

Thanks Sive! If money's tight then there's really no need. All the best :)

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Wow you are the goat man. Learning so much from you. Keep up the great work

[@chaapaa179]

Yaaaaaayyy just in time for my exams! 😁🤩
Thanks for the awesome vidoes 😊

[@AccountingStuff]

Good luck!!!

[@chaapaa179]

@@AccountingStuff thank you!!

[@JessePThomson]

You have carried me through my first year accounting course. So thank you!!. Would love if you could do some more managerial accounting vids to carry me through next semester too! :D

[@AccountingStuff]

Cheers for your suggestion!

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New subscriber here and I must say, I love your "Accounting Stuff."

[@AccountingStuff]

Cheers, it's great to have you on board!

[@yoryaleon4056]

We are currently struggling with our Finance teacher so all the classroom is learning from your videos, we have a test tomorrow, thank you so much for breaking it into small bits!

[@AccountingStuff]

Sorry for my late reply! How did it go?

[@sarkill6659]

Hey! I wanted to thank you for all the help. You have helped me along the way of my course and have a 97 in the course!! THANKK YOU!

[@AccountingStuff]

Boom! Congrats you nailed it :)

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Been waiting for you to post new content! Great video!

[@AccountingStuff]

Cheers Tyler :)

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James i cant stop liking your videos! brilliant!

[@AccountingStuff]

Thanks for your support :)

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I needed this one... thank you so much ❤️

[@AccountingStuff]

No worries, hope it helps :)

[@shawtayy_ellaxo1370]

I would really love to see a video or miniseries on Group/consolidated financial statements if possible! loving your videos so far

[@AccountingStuff]

Thanks for your request!

[@sade.shaday17]

Beautifully explained, simple and understandable.

[@AccountingStuff]

Thanks!

[@UnderworldgoddessMoon]

These are very helpful thank you

[@ashishhegde007]

Brilliant video as always James!

[@AccountingStuff]

Thanks Ashish!

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Thanks for making this easier to understand

[@AccountingStuff]

No worries, hope it's making sense :)

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Your videos are amazing at understanding the basics, really helped me pass first year😎

[@AccountingStuff]

Nice one! Great to hear it's going well :)

[@MTA19818]

Excellent video. I want more such videos for more understanding.

[@AccountingStuff]

Cheers, I plan to make many more :)

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You are a Genius man❤️Really a big fan of your videos

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Really happy that I've found your channel the way you explain makes it very easy to understand! Could you please explain ratios and earnings per share?

[@AccountingStuff]

Thanks for your suggestion!

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Good video man, thanks.

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Best lec, accounting looks hard but you make me take it easy,

[@AccountingStuff]

Thanks Victor, all the best!

[@ilearntocode2051]

Appreciate your work sir, thank you

[@ChriselleLopez]

Great explanation + a great visual presentation 👍

[@AccountingStuff]

Thanks Chriselle!

[@bestcomadyandlatest2450]

Thanks so much for your video, it has been helping me all true, but I need more videos on bookkeeping and triabalance

[@BenjaminOrthodox]

The shortest and most advanced video I’ve seen on the accounting equation.

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Thank you very much for this videos!

[@AccountingStuff]

My pleasure!

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Thank you!

[@hilaryliang]

REALLY GOOD VIDEO!!! THANKS

[@AccountingStuff]

Cheers!

[@MrOdsplut]

Please could you do a bit more on managerial or tax accounting as well as financial accounting?

[@AccountingStuff]

Cheers for your suggestions!

[@mahmudulshojan2514]

That was easy!! Thank you

[@AccountingStuff]

Cheers, glad it makes sense :)

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Hey Accouting man, I dont your name but your stuff is really great! I started watching your videos recently, i love how you teach a concept so simply. Can you also make a video on "Goodwill". Thanks in advance.

[@AccountingStuff]

Cheers Tarnija! My name's James :) Thanks for your suggestion

[@mikebanta9384]

this was amazingly helpful

[@AccountingStuff]

Cheers Mike, glad you found it useful :)

[@bkalkan7493]

thank you so much for your videos ! they are incredible and very useful. Could you please make a series which explain true company statements ? (of course by covering the names :) because accounting is understandable in lecture by but in real life practices the situation is severe :(
missed you !

[@AccountingStuff]

Cheers for your suggestion! I'll keep that in mind :)

[@haleighmiller8749]

thank you so much for your excellent videos and for the cheat sheet!! saving my a55 in my first accounting class

[@AccountingStuff]

No worries Haleigh, hope it's all going well :) Thanks for your support.

[@swaite2010]

Hi James! I’ve been watching your videos because I am enrolling in school to become an accountant. I’m at the very beginning of this journey and then end goal is to start my own business. Could you please do a video on the different ways a business is owned? You mentioned making one in a previous video but I don’t see one made. I’d really love to know the pros and cons of partnership, corporation, and single owner.
Also I love you videos. You make difficult principles easy to understand and reinforce them with examples in a way that help them stick! Please don’t stop!

[@AccountingStuff]

No worries Sidney, thanks for your suggestion!

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Thank you, your videos are extremely helpful

[@AccountingStuff]

Cheers Saneea!

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Keep up the good work.

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You helped me a lot. Thank u so much :)

[@AccountingStuff]

Cheers Jabrayil, glad you're finding these helpful :)

[@ultralegendarybeast101]

James is THE MAN!!!

[@rorideep4536]

Bro Thank you so much for making this Accounting thing sooooo easy to understand.
I didn't do Accounting in high school & now I'm in 1st year Marketing Management & I've got FA1B (cries) so i had to learn from the basics. Thank you so much for doing these videos

[@AccountingStuff]

No worries Rori, all the best with your studies!

[@theresabulfon5101]

Hi,
thank you for this video! Helped me understand accounting a lot better. Can you please tell me how the cash-flow statement fits into the extended equation?

[@doubleeggnoglatte829]

This is brilliant!

[@AccountingStuff]

Thanks :)

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Thank you James it was great video

[@AccountingStuff]

Cheers, I'm glad you enjoyed it :)

[@MyYoutubeAccount853]

Thank you 😊 🍃

[@teacherrussell5206]

That was awesome.

[@primmeprim7587]

You are my favorite accounting teacher

[@AccountingStuff]

Thanks :)

[@rose_mary_z]

Your videos are very helpful! Thank you! Would you kindly make some videos also regarding IFRS?🙂

[@hazemmashal2753]

Thanks a lot.