I'm one day and onlookers days this is the subject matter you look at you every single day the next probably in 2-3 weeks he going all these concepts healing powers day sunny spend an hour to go into this. next the 1 I'm pressures go through these concepts again because once you give your brain they really to make sense
is going to make your life much easier because more than likely
most you have more than one account an issue gold time passes thus that issue in this one suits your novelty on thats okay first be concept we want each is the wage you can equations states that assets equal liabilities plus at now assets are things that you know loses on once the equation liabilities as well
I'll was right still assets or what we home liabilities is well the 0 somebody else so these big hole crimes claims runners claiming in our business and equity is are owners climb on this okay let's go really simple
I'm sure everyone understand not to get think about stop watch watch the video really think about what we're trying to get across okay buses artisans with our business our own books so every business has its own calculations books sources brandis pizza or restoring our own pizza business and personally want to use my deliveries
So wanna har it will hardly be announced something we all source not be home with the cars were ten thousand dollars salon this the equations well business holes how the business get this car just here doesn't disappear and I would be great but it doesn't so car well he wage your a liability or we have we okay how can we get law we could have gone to the bank borrowing money we borrow ten thousand dollars that would be a liability as creditor be claim on that car we'll make payments
Bay financial institution is gonna come back and take repossessed right so we could have a liability per 10,000 me we also made thousand dollars solo are equation is about passes 10,000 and life will be so 10,000 now well what you personally want to put your heart into your cart business well that would be a liability out be you
Order play as you can do that you can contribute cash into your business or you can contribute assets so you've got an extra car you're not using you want to use for the business you he equity unit is right there we've got thousand owners blame and whereabouts okay because in this case there's no why don't we didn't borrow money from the bay so liabilities
an we r owners claim you'll be me peace or ten thousand dollars or ASI thousand claim people's else okay the equation works every single transaction our business we'll look back this come wage and after every single transaction the must be belts so this is really simple simple concept but now this point you realize that you got assets liabilities and equity you understand these terms inside now backwards and forwards
now buses for some all the assets were some things that we know the most common thing would be cash right businesses how their own cash savings accounts CE's checking accounts goes wrong cash cash in the cash register that's cash we talk about har building weigand supplies all his think that we are home would be assets liabilities
examples would be if we all managed to make okay.. we owe money to utility company we owe money to are employees okay because life has employees were and in a week or two later will not be called wages payable or sell repeal uses the word all askin alive believe me haptic sometime okay so we've got Accounts Payable wages
catskills the bottom and we also are we talk about callers play week really be broken-down is you 4 components we got our capital which tracks owners balance from happy you agree here we subtract
withdrawals breeding WD
the withdrawal so your your own business you can take cash out you can take cash out so you take reduce our asset and then we would have money coming out so two dollars on it company business you traction dollars in cash over here huge one dollar withdrawal because reduces the Acme your your business because you too meow
a we have revenue in the business that increases and expenses your expenses decrease are okay so revenue is well we bird money that you're from doing where our businesses in our case is Peter we sell pizza and salad means things like that so we're selling that run expenses will be those things that we pay our so gas for the car page chiles we've wages to employees those are all expenses and the reduced profit this is right revenues increase our profit expenses
decrease our pop now in other videos can explain more in detail about this okay right now stop he capital well only contributes to the business on robbers samples car ten thousand dollar car your capital One Cup als K all you take how revenues is that sales profit venture and expenses as well reduces our the company okay so acid for this to you or videos for this first chapter so you make sure you go through all these videos your pocket watch these videos times to make church understand all these concepts and also usually you same time right lot him. Thanks for visit..
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