Hello in this presentation we are going to record business transactions involving cash using debits and credits. At the end of this, we will be able to list transactions involving cash record transactions involving cash using debits and credits and explain the effect of transactions on assets, liabilities, equity, revenue, expenses and net income. We’re going to record these transactions on the left hand side in accordance with our thought process. We’re then going to post them to a worksheet format, not necessarily or in this case, not a general ledger. But in a similar way, we will post it to this worksheet in order to see what is happening to each of these accounts individually as well as the groups of accounts in terms of assets, liabilities, equity, revenue and expenses, notes the order of the trial balance, always in the order of acids in this case in green liabilities in orange, and then we have the equity and revenue and expenses, the income statement accounts and net income at the bottom calculated as revenue minus expenses.
Whoa in this presentation we will be discussing a cash method versus an accrual method objectives. We will be able to at the end of this, define and explain a cash method, define and explain an accrual method and explain the difference between the cash and accrual methods. When considering the cash method and the accrual method, they’re not necessarily completely different or diametrically opposed. But when presented, they are often presented in this format partially because in order to explain one, it’s often useful to know the other it’s useful to be able to compare the differences between the two methods.
Hello in this presentation we will be discussing the revenue recognition principle. first idea will be that revenue is not the same thing as cash objective. At the end of this presentation we will be able to define the revenue recognition principle explained the relevance of the revenue recognition principle and provide examples of the revenue recognition principle the revenue recognition principle has to do with when we should record revenue. When considering when revenue should be recorded. It’s often thought that we should record revenue when cash is received.
This presentation we’re going to start our bank reconciliation for the first month of operations entering the deposits or reconciling the deposits for month one for January. Let’s get into it with Intuit QuickBooks Online. Now. Here we are in our get great guitars file. Let’s start off by opening up our report. So I’m going to go to the report down below, we’re going to be taking a look at the balance sheet report because we will be focusing in of course on cash. So I’m going to go up top and change the date. So we’re just going to look at the first month so Oh, 10120 to 12. I’m sorry, oh 131 to zero, so January 1 to January 31 2020. Let’s go ahead and run that report. Then I’m going to go up top to the tab up top, right click on it, duplicate that tab.
This presentation and we’re going to take a look at the month in financial statements. And this time since we have two months to compare, we’re going to be creating comparative financial statements comparing the two months that we have a comparative balance sheet, a comparative income statement, we’ll also take a look at the transactions by date, the great report for checking our numbers, reviewing numbers for an employee, and possibly even for billing purposes to see how many transactions has been made. So you can possibly bill by transaction.
This presentation and we will generate, analyze, print and export to Excel our month in financial statement reports that’s going to include the profit and loss report or income statement report, the balance sheet report, and then we’ll take a look at that transaction detailed report that’s going to give us a lot of information to see what we have done over the month. It’s really good information that some people use for billion for the month.