The Classified Balance Sheet

In this video, I discuss what a classified balance sheet is and how to create one. In addition, I discuss two liquidity ratios: the Current Ratio and the Debt Ratio.

• The Classified Balance Sheet and Liquidity Ratios (Current Ratio & Debt Ratio)

https://youtu.be/7U1a94hF4LE

Accrual Accounting and Adjusting Entries

 I recently uploaded a new video lecture on Accrual Accounting versus the Cash-Basis of Accounting. In addition, the video explains the five adjusting entry types and examples of each. Check it out!

Accounting Terms, Accounting Principles and the Accounting Equation

Accounting Terms, Accounting Principles, Accounting Equation

Accounting is the language of business that reports financial data in the form of reports. These reports are also referred to as financial statements. There are four financial statements that are required by GAAP (generally accepted accounting principles): Income Statement, Statement of Retained Earnings, Balance Sheet and the Statement of Cash Flows.  

Learn more about the operating activities section of the Statement of Cash Flows (with video)

The area of financial accounting deals with providing information to users outside the business to assist those users in decision making about a business. GAAP requires that useful information must be relevant, reliable and comparable.