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Accounting for Equity Investments at Cost: The Practicability Exception
 
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Equity investments that consist of less than 20% ownership of the investee are typically accounted for using the Fair Value Method. However, when the fair value of the investment cannot be easily determined (e.g., if it's an investment in a startup that isn't traded on an exchange), the investment should be accounted for at cost, minus any impairments. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 1514 Edspira
Accounting for Investments (Equity and Debt Securities)
 
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This video provides an overview of the accounting rules and classifications for different types of investments. Investments can be broadly grouped into two types: debt investments and equity investments. Debt investments can be held-to-maturity (presented on the Balance Sheet at amortized cost, with changes in fair value not affecting Net Income), available-for-sale (presented on the Balance Sheet at fair value, with unrealized gains or losses bypassing the Income Statement and flowing through Other Comprehensive Income), or Trading (presented on the Balance Sheet at fair value, with unrealized gains or losses affecting Net Income. Equity investments are treated as Trading Securities according to the Fair Value Method (if the investor owns less than 20% of the investee), which marks the investment to market on the Balance Sheet and has unrealized gains or losses flow through Net Income. There is a practicability exception, however: if the fair value cannot be determined, the investment is presented on the Balance Sheet at cost, minus any impairments. If the investor owns between 20% and 50% of the investee the Equity Method is used; with this method, the investor does not recognize dividend revenue but instead recognizes a proportionate share of the investee's Net Income. If the investor owns more than 50% of the investee, the investor must consolidate the investee (the two entities are treated as one consolidated entity). Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 23504 Edspira
Equity Method of Accounting for Investments
 
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This video uses a comprehensive example to demonstrate how to account for investments using the Equity Method. When an investor owns between 20% and 50% of a firm's stock, the investor is deemed to have significant influence and must recognize a proportionate share of the firm's earnings. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 54457 Edspira
Equity Method vs Fair Value Method (Financial Accounting)
 
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This video shows the differences between the Equity Method and Fair Value Method of accounting for investments. A comprehensive example is presented to illustrate how the Equity Method requires the investor to recognize a proportionate share of the investee's net income or loss, while the Fair Value Method requires the investor to recognize dividend revenue and unrealized holding gains or losses. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 49742 Edspira
FAR Exam Cost and Equity Method
 
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Pulled straight from the FAR section of the Roger CPA Review course, this Study Session features Roger Philipp, CPA, CGMA, teaching Cost and Equity Method. Using the renowned Roger Method™, Roger will help you master this classic CPA exam "hot topic" through his motivational and dynamic lecture, plus an exclusive excerpt from the course textbook. Connect with us: Website: https://www.rogercpareview.com Blog: https://www.rogercpareview.com/blog Facebook: https://www.facebook.com/RogerCPAReview Twitter: https://twitter.com/rogercpareview LinkedIn: https://www.linkedin.com/company/roger-cpa-review Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: https://www.rogercpareview.com/professor-resource-center/ Video Transcript Sneak Peek: Alright, the next area we’re going to talk about deals with cost equity...do I have good volume there, good volume? Yeah? Very nice. Alright, cost equity. So we’re talking about investments. We’re actually going to talk in two different sections, cost equity and the next section is called marketable securities.
Views: 174888 Roger CPA Review
Fair Value Method for Equity Investments (less than 20% ownership stake)
 
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This video shows how to use the Fair Value Method to account for Equity Investments. The Fair Value Method is used when a firm owns less than 20% of the stock of the investee (if the firm owns between 20% and 50% of the investee, it can make an irrevocable election to use the Fair Value Method). The Fair Value Method requires that the investment be marked to market (its fair value) on the Balance Sheet, and that any unrealized gains or losses flow through the Income Statement to affect Net Income. Also, any dividends received from the investee are recorded as dividend revenue, which increases Net Income. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 14125 Edspira
The Amortized Cost of a Held to Maturity Investment
 
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This video shows how to find the amortized cost of a held-to-maturity investment. Debt investments can be classified as trading, available-for-sale, or held-to-maturity. While trading and available-for-sale investments are presented on the Balance Sheet at fair value, held-to-maturity investments appear on the Balance Sheet at amortized cost. This "amortized cost" is the carrying value of the bond as of the Balance Sheet date. The video provides an example to illustrate this. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 5415 Edspira
Held to Maturity, Investment in Debt Securities | Intermediate Accounting | CPA Exam FAR | Chp17 p 2
 
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held to maturity, amortized cost, fair value, unrealized holding gain, unrealized holding loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, fair value adjustment, Debt investment, equity investment, trading securities, available for sale,
CapEx vs OpEx explanation
 
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CapEx versus OpEx. Capital Expenditures versus Operating Expenditures. There is a finance and accounting aspect to the terms CapEx and Opex, as well as a business model aspect. Let’s discuss both, and walk through some examples of how the terms CapEx and OpEx are used. CapEx is Capital Expenditures. OpEx is Operating Expenditures. What these terms have in common is the word expenditures, you are spending money, but in different ways. Capital Expenditures. As a working definition of CapEx, this is money spent by a business or organization to acquire or upgrade fixed assets, such as buildings, machines and equipment. Operating Expenditures. If CapEx is the upfront investment to buy a fixed asset, then a working definition of OpEx is the ongoing spending to keep the fixed asset running. For an expenditure to be considered as CapEx, you have to own an asset. There is a threshold level for expenditures to qualify as CapEx: there must be a useful life of more than one year, and the asset value must be more than a minimum amount. I have worked with a company where this minimum was $2500, and others where it was $7000. Please check with the finance department of your company on what your minimum level is. How about that part of maintenance where you are improving the performance of a machine and increase its capacity? What about software developed for internal use? What about the development phase of R&D? You could argue in all three cases that future economic benefits are generated by these projects, and according to the matching principle in finance it would be appropriate to capitalize these costs, and subsequently depreciate or amortize these assets over their useful life. Each of these cases will have to be evaluated carefully against current US GAAP or IFRS rules (depending on where your company is listed), and you will have to meet very strict criteria to apply a CapEx treatment. How does CapEx affect the financial statements? Let’s take a look at the balance sheet, the income statement and the cash flow statement, when we answer the question “does this expenditure qualify for CapEx (it meets the capitalization criteria) or it does not qualify as CapEx?”. First of all, the CapEx spend is a cash outflow recorded in “Cash From Investing Activities”. On the balance sheet, it gets accounted for as an asset, in the Plant and Equipment category. Over the years of its useful life, the asset gets depreciated, and the depreciation charge hits the income statement or P&L in each of the years of the assets’ economic life. I will link to my video about deprecation if you are interested in learning how that works: https://www.youtube.com/watch?v=6SY8s1_OEro Do you go for the upfront CapEx investment to own servers for your datacenter, where you are unsure how much capacity you will actually need, or do you pay a monthly OpEx fee for an external cloud service where it’s pretty much “pay as you go” and “spend what you use”? I can’t give you a “one size fits all” answer to this question, it’s really something that an IT manager and a finance manager should analyze together. Risk and scale should be part of this conversation. The evaluation is a variation of the age-old “own versus use”, “buy versus rent”, “buy versus lease” discussion, which is more relevant than ever before in these days of ubiquitous digital devices and tools, disruption of mobility models through Uber and others, and disruption of the travel and leisure models through Airbnb. This video discusses the impact of CapEx versus OpEx on the balance sheet, income statement, and cash flow statement, as well as ratios such as ROA. For more information on ROA and DuPont analysis, watch https://www.youtube.com/watch?v=bhbDDSohJ84 Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
FV NI Investment Model Overview
 
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This video provides an overview of the FV NI investment model in accordance with IFRS 9. ASPE (Accounting Standards for Private Companies in Canada) are also discussed.
Views: 2433 Virtual Classroom
What is PROJECT ACCOUNTING? What does PROJECT ACCOUNTING mean? PROJECT ACCOUNTING meaning
 
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✪✪✪✪✪ WORK FROM HOME! Looking for WORKERS for simple Internet data entry JOBS. $15-20 per hour. SIGN UP here - http://jobs.theaudiopedia.com ✪✪✪✪✪ ✪✪✪✪✪ The Audiopedia Android application, INSTALL NOW - https://play.google.com/store/apps/details?id=com.wTheAudiopedia_8069473 ✪✪✪✪✪ What is PROJECT ACCOUNTING? What does PROJECT ACCOUNTING mean? PROJECT ACCOUNTING meaning - PROJECT ACCOUNTING definition - PROJECT ACCOUNTING explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Project accounting (sometimes referred to as job cost accounting) is the practice of creating financial reports specifically designed to track the financial progress of projects, which can then be used by managers to aid project management. Standard accounting is primarily aimed at monitoring financial progress of organizational elements (geographical or functional departments, divisions and the enterprise as a whole) over defined time periods (mkkj weeks, months, quarters and years). In Australia, project accounting workers earn up to an average AU$79,725 per year. Most people working in this field move to a different position after approximately 20 years. The jobs that normally increase pay towards this job is Budget Managing and Cost Accounting. Projects differ in that they frequently cross organisational boundaries, may last for anything from a few days or weeks to a number of years, during which time budgets may also be revised many times. They may also be one of a number of projects that make up a larger overall project or program. Consequently, in a project management environment costs (both direct and overhead) and revenues are also allocated to projects, which may be subdivided into a work breakdown structure, and grouped together into project hierarchies. Project accounting permits reporting at any such level that has been defined, and often allows comparison with historical as well as current budgets. Project accounting is commonly used by government contractors, where the ability to account for costs by contract (and sometimes contract line item, or CLIN) is usually a requirement for interim payments. Percentage-of-completion is frequently independently assessed by a project manager. It includes the continuous recognition of revenues and income related to longer-term projects. By doing this, the seller is able to identify some gain or loss relevant to a project in every accounting period that is ongoing active. Funding advances and actual-to-budget cost variances are calculated using the project budget adjusted to percent-of-completion. Where labor costs are a significant portion of overall project cost, it is usually necessary for employees to fill out a timesheet in order to generate the data to allocate project costs. The capital budget processes of corporations and governments are chiefly concerned with major investment projects that typically have upfront costs and longer term benefits. Investment go / no-go decisions are largely based on net present value assessments. Project accounting of the costs and benefits can provide crucially important feedback on the quality of these important decisions. An interesting specialised form of project accounting is production accounting, which tracks the costs of individual movie and television episode film production costs. A movie studio will employ production accounting to track the costs of its many separate projects.
Views: 10236 The Audiopedia
IAS 28 Investments in Associates and Joint Ventures
 
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http://www.ifrsbox.com This is the short summary of the standard IAS 28 Investments in Associates and Joint Ventures .The objective of IAS 28 is: • To prescribe the accounting for investments in associates, and • To set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. Standard IAS 28 defines significant influence as the power to participate in the financial and operating policy decisions of the investee, but is NOT a control or joint control of those policies. The main indicator of significant influence is holding (directly or indirectly) more than 20% of the voting power of the investee. The basic principles of equity method are: 1. The investment in an associate or joint venture is recognized at cost on initial recognition (acquisition date). 2. The carrying amount of the investment is increased or decreased by the investor’s share on investee’s net profit or loss after the acquisition date. 3. When investee distributes some dividends to the investor, then this distribution decreases the carrying amount of the investment. IAS 28 sets also exemptions from equity method, when to discontinue equity method and equity method procedures.
Views: 62555 Silvia M. (of IFRSbox)
FV OCI Equity Investment Accounting Example
 
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This video illustrates how to record transactions related to FV OCI investments including how to record a purchase, adjustment to fair value at each reporting period, and a sale of shares.
Views: 5347 Virtual Classroom
Gains and Losses (Financial Accounting)
 
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This video explains the concept of Gains and Losses in Financial Accounting. Gains and Losses are defined, and an example is provided to distinguish Gains and Losses from Revenues and Expenses on the Income Statement. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 14559 Edspira
An investor should always use the equity method to account for an investment if:
 
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An investor should always use the equity method to account for an investment if: Fair-Value Method In many instances, an investor possesses only a small percentage of an investee company’s outstanding stock, perhaps only a few shares. Because of the limited level of ownership, the investor cannot expect to significantly affect the investee’s operations or decision making. These shares are bought in anticipation of cash dividends or in appreciation of stock market values. Such investments are recorded at cost and periodically adjusted to fair value according to the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 321, “Investments—Equity Securities.” Fair value is defined by the ASC (Master Glossary) as the “price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” For most investments in equity securities, quoted stock market prices represent fair values. Because a full coverage of limited ownership investments in equity securities is presented in intermediate accounting textbooks, only the following basic principles are noted here: Initial investments in equity securities are recorded at cost and subsequently adjusted to fair value if fair value is readily determinable (typically by reference to market value); otherwise, the investment remains at cost. Changes in the fair values of equity securities during a reporting period are recognized as income. Dividends declared on the equity securities are recognized as income. Cost Method (Investments in Equity Securities without Readily Determinable Fair Values) When the fair value of an investment in equity securities is not readily determinable, and the investment provides neither significant influence nor control, the investment may be measured at cost. Such investments sometimes can be found in ownership shares of firms that are not publicly traded or experience only infrequent trades. Investments in equity securities that employ the cost method often continue to be reported at their original cost over time.3 Income from cost method equity investments usually consists of the investor’s share of dividends declared by the investee. However, despite its emphasis on cost measurements, GAAP allows for two fair value assessments that may affect cost method amounts reported on the balance sheet and the income statement. Consolidation of Financial Statements Many corporate investors acquire enough shares to gain actual control over an investee’s operations. In financial accounting, such control may be achieved when a stockholder accumulates more than 50 percent of an organization’s outstanding voting stock. At that point, rather than simply influencing the investee’s decisions, the investor often can direct the entire decision-making process. A review of the financial statements of America’s largest organizations indicates that legal control of one or more subsidiary companies is an almost universal practice. PepsiCo, Inc., as just one example, holds a majority interest in the voting stock of literally hundreds of corporations. Investor control over an investee presents a special accounting challenge. Normally, when a majority of voting stock is held, the investor-investee relationship is so closely connected that the two corporations are viewed as a single entity for reporting purposes.5 Hence, an entirely different set of accounting procedures is applicable. Control generally requires the consolidation of the accounting information produced by the individual companies. Thus, a single set of financial statements is created for external reporting purposes with all assets, liabilities, revenues, and expenses brought together. The various procedures applied within this consolidation process are examined in subsequent chapters of this textbook. Equity Method Another investment relationship is appropriately accounted for using the equity method. In many investments, although control is not achieved, the degree of ownership indicates the ability of the investor to exercise significant influence over the investee. To provide objective reporting for investments with significant influence, FASB ASC Topic 323, “Investments—Equity Method and Joint Ventures,” describes the use of the equity method. The equity method employs the accrual basis for recognizing the investor’s share of investee income. Accordingly, the investor recognizes income as it is earned by the investee. As noted in FASB ASC (para. 323-10-05-5), because of its significant influence over the investee, the investor has a degree of responsibility for the return on its investment and it is appropriate to include in the results of operations of the investor its share of earnings or losses of the investee. Furthermore, under the equity method, the investor records its share of investee dividends declared as a decrease in the investment account, not as income.
Advanced Accounting - Equity Method - Investment in Investee
 
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For more videos like this go to www.patrickleemsa.com. Join Robinhood and we'll both get a share of stock like Apple, Ford, or Sprint for free. To do so, make sure you click on this link: https://share.robinhood.com/patrickl803 ___________________________________ NETWORK WITH ME! PATRICKLEECPA Twitter - https://twitter.com/patrickleecpa Website – https://www.patrickleecmsa.com ___________________________________________ Send a letter or send something cool about how you’re using these videos. Patrick Lee, MSA PO Box 936 Winfield, Kansas 67156 ___________________________________________ WORK WITH ME! CONTACT US: [email protected]
Views: 7335 Patrick Lee
How To Calculate Your Cost of Customer Acquisition (CAC)
 
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In one of our last video, we talked about the the top 5 metrics you should measure . We talked about the CAC, and today we will take an in-depth look at the CAC: the acquisition cost - a concept coming from accounting, it concerns the amount spent by the company to conquer a new customer. Understand the Cost of Acquisition The cost of acquiring a new customer is one of the most important metrics for marketing because your balance is critical to the financial health of your business. Within this metric are all expenses related to the transformation of a prospect into a lead and then into a customer. Expenses such as: • Advertising expenses; • Hours worked in the production of content and rich materials; • Expenses with e-mail marketing tools; • Expenses related to lead nutrition; • Hours worked in meetings and the time of travel to them; • Costs for telephone calls and transportation for the visit to the leads, • Participation in events and trade fairs. Just because of this initial listing, you can see that getting a new customer to your business can be quite a chore. Therefore, it is very important to calculate your variables accurately. Learn how to calculate Customer Acquisition Cost (CAC) It is often difficult to list all the costs involved in acquiring each of your customers. This is easy for small businesses because they are still in the early stages of their activities, however, as the business grows, some tools are needed. There are two main formulas that can be used to calculate the cost of acquisition. A simplified one, which can be used to create partial estimates; and the complete formula, which brings more accurate results. The simplified CAC formula needs two variables: the total cost of marketing for acquisition  (MA) and the number of customers acquired (CA). To get the total cost of acquisition marketing (MA), you must add all campaigns, online and offline to reach your target audience. Expenses with sponsored links campaigns, ads in offline media, direct marketing expenses, salaries of professionals involved in these activities and other expenses related to marketing campaigns. The formula would look like this: CAC = MA / CA The complete formula separates all expenses related to the MA and provides the following variables: CAC = Cost of customer acquisition MCC = Total marketing campaign costs related to acquisition (not rentention) W = Wages associated with marketing and sales S = The cost of all marketing and sales software (Inc ecommerce platform, Automated marketing, A/B Testing, Analytics etc) PS = Any additional professional services used in marketing/Sales (Designers, Consultants etc) O = Other overheads related to marketing and sales. CA = Total customers acquired The formula is drawn as follows: CAC = MCC + W + S + PS + O / CA Cost of customer acquisition is one of the key metrics to find out if your business finances are healthy, however, this parameter can only be checked when this indicator can be related to others, such as Return on Investment (ROI) and Lifetime Value. Learn more about Acquisition Cost x ROI The acquisition cost should be accounted for as an investment. Therefore, it should be considered when calculating return on investment (ROI). The formula for calculating return on investment should be as follows: ROI = Billing - (CAC + operating costs) If the final value is positive, the billing surpasses the expenses for the acquisition of the client and the costs to maintain the operation of the products and services. If this is not the case, the entrepreneur will need to review its cost structure and the prices charged. Acquisition Cost X Lifetime Value Lifetime Value is the value that the customer gained brings to the company over time that maintains relationship with your business. For your business to be profitable, it is critical that this value exceeds the cost of acquiring customers. This can only happen in two ways: the purchase value exceeds the cost of acquisition or the number of times the customer returns brings a continuous billing that exceeds the initial investment for customer acquisition. It is up to the entrepreneur to decide, according to the specifics of his business, what is the best strategy. Ideally, the percentage of responsibility for your business billing should be balanced, with a share coming from acquiring new customers and another from the loyalty of old customers. Now that you know a little more about the concept of cost of acquisition, how about discovering new windows and tips on entrepreneurship? Subscribe to our newsletter and receive exclusive content directly in your e-mail. * Don't Be Shy Say Hi! * Instagram :instagram.com/arthur.carloss Website : http://www.carlosarthur.com FaceBook : https://www.facebook.com/Carlos.Arthurr SnapChat : carlos_arthurr
Views: 49 Carlos Arthur
Trading Securities:  The Fair Value Method (Financial Accounting)
 
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This video shows the accounting for Trading Securities. When an investor owns less than 20% of the investee's equity securities, the investor uses the fair value method to account for the securities (marking the securities to market and tracking unrealized gains and losses). When the investor's intent is to sell the securities in the short-term, then the securities are deemed to be Trading Securities and the unrealized gains or losses flow through the Income Statement. When the securities are ultimately sold, the realized gain or loss also flows through the Income Statement. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 24070 Edspira
Dividend Investing: Pros and Cons of DRIPS (Dividend Reinvestment Plans)
 
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Dividend Investing: Pros and Cons of DRIPS (Dividend Reinvestment Plans) People often ask: - What are the pros and cons of drips? - Should I invest in a drip? - How do Drips work? Dividend Investing: Pros and Cons of Drip Investing: Drips stands for Dividend Reinvestment plan. Drips are becoming highly popular among investors, and offer many positive benefits, but before you engage in this invest strategy it’s important to know the pros and cons. If you don’t know how a dividend reinvestment plan works, no worries, because it’s fairly simple to explain. Normally when an investor receives a dividend payment they receive that payment in form of cash. Complete Dividend Investing Playlist •https://www.youtube.com/playlist?list=PLSofnwEEZdUyz-g2aNTw8JSFOCM6YuhK4 • https://www.youtube.com/playlist?list=PLSofnwEEZdUw87VFWO6AgmZ5KGWvuxBU9 In Drip arrangement, instead of receiving cash, the investor receives additional shares of a particular company’s stock. So instead of receiving $4 in cash from a McDonalds stock, the dividend payment is automatically reinvested to purchase additional shares of McDonalds stock. In the Drip arrangement it is possible to purchase fractional shares of stock. Pros 1. (Potential for faster compounding interest) – New cash influxes from dividend payments are being automatically put to work. Your money will not sit idle in the account, because this type of plan generally allows one to purchase partial shares of a company’s stock. 2. Few barriers to entry concerning to the DRIP – Generally Drips’ allow an investor to enroll in the plan even if they only own one share of stock. This allows investors at all levels to participate in the benefit the drip. 3. Generally there are no transaction costs related to DRIPS. Under most circumstances the additional stock reinvestments under the plan are either free or very minimal. 4. The potential to purchase shares at discount. Some companies may allow investors to purchase shares at a small discount if they are enrolled in the Drip. The discount may be as low as 1% and high as 10% depending on the company. 5. Low maintenance investing – You do not to continually think about how to reinvest your dividends. It will all be taken care for you Cons 1. Loss of flexibility. With the same shares being repurchased over and over again in your portfolio lack of diversification may eventually become an issue in your portfolio. Beyond that, your investment becomes less liquid. To get out of a DRIP arrangement or sale a stock within the drip plan may take additional time and you will not be able to sale your position as easily if you really need to. 2. No physical cash, but taxed on the dividends - In the eyes of the IRS even though you did not receive your dividend payment in the form of cash it is still considered taxable income to you. Reinvested dividends are taxed just like any other dividend. Therefore, if you planning to reinvest all of your dividends through a drip realize that when you go to file your tax return you going to have to pay taxes on the amount of dividends you received for the year. 3. Drip systems can lead to more complicated record keeping for taxes. Brokerage companies often do not keep track of a person’s stock basis once it enters to a drip. As an investor it is very important that you maintain good records of all the dividends reinvestments, because it is going to affect your stocks cost basis for tax purposes. 4. Drips are not suitable for short-term investors. If short-term investing is something you are into then I would not recommend doing a DRIP. Infect you may not be able to. 5. Your dividends may not be receiving highest and best use – Sometimes purchasing additional shares of company stock might not make sense if the company is not doing well. Therefore by investing in the drip you have to consider what other investment choices you are giving. Summary: In summary drips can be a great investing tool for long-term investors. Drips can minimize transaction costs. It may allow investors to purchase stocks at a discount, and allow even the smallest of investors to participate just by owning one of stock. Having your dividends automatically reinvested will further fuel the compounding interest growth of an investor’s portfolio but remember a drip comes with a price. The price is the investments become less liquid. Your dividends may not be receiving highest and best use. Tax record keeping becomes more complicated, and an investor will have to pay tax on the reinvested dividends even though they did not receive the money. My Website: Moneyandlifetv.com Twitter: https://twitter.com/Mkchip123 Facebook: https://www.facebook.com/moneyandlifetv/
Views: 6351 Money and Life TV
Real Estate Accounting - Purchase Property (Part 1)
 
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Free Download: https://www.incomedigs.com/qbosetupguide Visit our Official Website: http://www.incomedigs.com Visit our Official Facebook Page: https://www.facebook.com/IncomeDigs/ Learn how to record a journal entry for the purchase of property! This simple video demonstrates how to translate data from your closing statement to your accounting books.
Views: 40786 Income Digs
Fair value accounting | Finance & Capital Markets | Khan Academy
 
02:57
Difference between Historical Cost and Fair Value Accounting. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme/depreciation-amortization-tut/v/expensing-a-truck-leads-to-inconsistent-performance?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme/financial-statements-tutorial/v/doing-the-example-with-accounts-payable-growing?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Corporations use three financial statements to report what's going on: balance sheets, cash flow statements and income statements. They can be derived from each other and each give a valuable lens on the operations and condition of a business. After you know the basics of accrual accounting (available in another tutorial), this tutorial will give you tools you need to responsibly understand any business. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 178737 Khan Academy
The Truth About Mutual Funds Real Returns After Fees - Right On The Money - Part 4 of 5
 
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Sub Headline: Many investors Appear Unaware of the Fees Associated with Their Funds Synopsis: Ubiquitous in the financial landscape, many investors don’t understand the real returns of mutual funds, and some investors can confuse funds’ diversity with safety. Content: While the popularity and simplicity of mutual funds has made them a nearly default option in many portfolios; their risk can be easily overlooked during the selection process. Additionally, a misunderstanding of basic math can result in a disconnect between an investor’s risk tolerance and the choice of a specific fund among the thousands available. This combination can be particularly troublesome for retirees, who don’t have time to recover from losses, and that carry an oft- presumed safety net through diversity. Mutual funds come in as many sizes and shapes as the investor can imagine, with roots dating to the early 1800s in the Netherlands. Their proliferation in the United States began nearly a century later, and their escalating popularity in the 1980s and 1990s - through companies like Vanguard and Fidelity - made them a popular early investment choice among today’s Baby Boomers, who are retiring in droves and see them as a natural retirement portfolio choice. Watch the interview with retirement income certified professional and investment adviser representative Tripp LeFevre as he discuss the realities of mutual funds. Still, mutual funds’ appropriateness for this life stage can be called into question when investment basics are considered, and here are three that should be part of any discussion or evaluation: 1. The first step in choosing a fund is to determine your tolerance for risk, and then narrow the field accordingly. A fund’s inherent diversity doesn’t insure safety, just a spreading of the risk. Funds considered to be high-growth will have a range of companies, where one that is acceptable to one investor may be intolerable to another. 2. Average returns over time are not actual returns, especially when negative-year returns are considered. An index fund tied to the S&P 500 would have experienced a 37% decline in 2008, and a 26% gain in 2009. Investors applying “mistaken math” might see this as either a 5% - 10% reduction of principal, the result was a more-than 20% reduction, with a $50,000 investment on January 1, 2008 reduced to $39,834 on December 31, 2009. 3. Fees matter, and must be accounted for. Different types of fees that service transactions or the investment advisor can quickly climb to 3% or more, reducing the number of shares, and ultimately impacting account value. While consumers are sensitive to fees, few bother to understand the underlying fee components, many of which can be found in the fund’s prospectus. Similar to other investment options, any inclusion of mutual funds in a retirement portfolio must consider the sequence of returns, which is often mentioned as the most influential aspect of retirement planning, but is just as often overlooked. Investors who take distributions during a bear market, as in 2008 mentioned above, experience a double whammy by selling at a point of reduced value, and then eliminating those share from a future recovery. Whether an investor chooses an index-based fund with relatively lower fees, or a segment-specific fund that often has higher fees due to the everyday involvement of a fund manager, caution rooted in risk tolerance is encouraged, with recognition that mutual funds are not an offset for inevitable market volatility. Syndicated financial columnist Steve Savant interviews retirement income certified professional and investment adviser representative Tripp LeFerve on Navigating Risks in Retirement. Right on the Money is a weekly financial talk show for consumers, distributed as video press releases to 280 media outlets and social media networks nationwide. www.rightonthemoneyshow.com https://youtu.be/XHREkQ2HYRo
AS 13 - Investment Accounting - Dividend, Bonus & Right shares Adjustment Part 2
 
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Learn AS 13 - Investment Accounting for CA Intermediate (New Syllabus) Exam. In this video you will learn how to Dividend, Bonus and Right shares rule for investment accounting chapter. Also we have added a playlist, which contains a series of videos that will help you with understanding the logics how investment in shares or investment in debentures is to be accounted as per the Accounting Standards. We have also solved the sums of the ICAI study material. These Videos are developed by CA Yashvardhan Saboo founder of www.konceptca.com for more such videos please make a free account either at our website or our CA Intermediate Application. Link for CA Inter App - https://play.google.com/store/apps/details?id=com.konceptca.koncepteduipcc Please like share and subscribe, and also let us know your thoughts by a video comment!
Views: 2058 Koncept Education
Retained Earnings explained
 
06:14
What is the meaning of the term retained earnings? Where do retained earnings show up in the financial statements? What makes retained earnings go up or down? In this video we walk through the definition of retained earnings, analyze two real-life examples of well-known companies to understand how retained earnings get accounted for, and provide bonus tips above and beyond what other videos and textbooks would give you on things you should know about retained earnings. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Statement of Cash Flows:  How to Account for Equity Method Investments
 
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This video shows the effect of an Equity Method investment on the Statement of Cash Flows. When the investor recognizes a share of the investee's Net Income, the investor must subtract this amount as an adjustment in the cash flow from operating activities section. When the investor recognizes a share of the investee's Net Loss, the investor must add this amount as an adjustment in the cash flow from operating activities section. If the investor receives dividends from the investee, the dividends received are added as an adjustment in the cash flow from operating activities section. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 3309 Edspira
The Accounting Equation
 
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http://www.accounting101.org/accounting-equation/ Every transaction that happens within a business has an effect on its financial position. The accounting equation is what keeps all of the transactions in balance and helps users of the information make sense of what areas each transaction affects. The financial position of any company is based on the following items: Assets: what the company owns Liabilities: what the company owes to other parties Owners' Equity: the difference between assets and liabilities The Accounting Equation The basic accounting equation simplifies our understanding of how these three areas of the company relate to each other. The basic accounting equation for any given business is: Assets = Liabilities + Owners' Equity Assets are the things that the company owns, or its resources. Assets are things like cash, accounts receivable, inventory, prepaid insurance, buildings & equipment, land, and goodwill. Remember that total assets will always equal liabilities + owners' equity. That's exactly what a balance sheet means... because the assets, or the left side of the balance sheet, will always equal liabilities + owners' equity, or the right side of the balance sheet. Liabilities are the company's obligations, or the amounts that the company still has to repay to other parties. Liabilities can be notes payable, accounts payable, wages payable, interest payable, bonds payable, or income taxes payable. Liabilities can be viewed as bills that the company has to pay, or as the part of the source of acquiring their assets. For example, if the company bought a new delivery truck for $20,000 using a $20,000 loan from the bank, then the company has an asset of $20,000, as well as a liability of $20,000 to pay back to the bank. Notice that the asset equals the liability in this example. Owners' equity is the amounts invested by the owners of the company plus the cumulative net income that hasn't been taken out or distributed as dividends to the owners of the company. Difference Between the Balance Sheet and the Income Statement As we already mentioned, the balance sheet is called the balance sheet because the accounting equation will always balance... meaning the assets side of the balance sheet will always equal the same as the liabilities + owners' equity. There is also a big difference in the format of the balance sheet versus the income statement. The balance sheet gives a company's financial position at any given point in time, where as the income statement is a report of activities over a given time period.
Views: 165508 SuperfastCPA
The 5 Mistakes New Real Estate Investors Make
 
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The 5 Mistakes New Real Estate Investors Make How to Calculate ROI on a Real Estate Investment: https://goo.gl/JfYxm9 What Is the 1% Rule for Real Estate Investing?: https://goo.gl/Z5KBqN EP197: The Legal Loopholes of Real Estate - Interview with Garrett Sutton: https://goo.gl/S2Ay4f The 3 Renovations That Are a Waste of Money in a Rental Property: https://goo.gl/K6r4v1 morrisinvest.com/funding ProVision Wealth: https://goo.gl/MPML8P Visio Lending: https://goo.gl/2tGND9 LimaOne Capital: https://goo.gl/gwZ9oU EP006: The Best Properties Are Not in Your Backyard: https://goo.gl/E8c8aY Download the Freedom Cheat Sheet: morrisinvest.com/freedom Morris Invest Property Walk Through: https://goo.gl/wmvELJ BOOK A CALL WITH OUR TEAM TODAY AT MORRIS INVEST: https://goo.gl/EbDRWj VIDEOS ABOUT GETTING STARTED IN REAL ESTATE https://www.youtube.com/playlist?list=PLZdhTWJ6Yawp1LPllyyeQho_ouMhrbOy6 VIDEOS ABOUT REAL ESTATE NEWS https://www.youtube.com/playlist?list=PLZdhTWJ6Yawp7aUQgMPmAanHSYgP-UI0i SUBSCRIBE AND JOIN OUR AWESOME COMMUNITY: https://www.youtube.com/c/MorrisInvest SUBSCRIBE TO THE iTUNES PODCAST: iTunes: https://goo.gl/tSfSM8 FOLLOW ME ON SOCIAL MEDIA: Twitter: http://www.twitter.com/claytonmorris Facebook: https://www.facebook.com/MorrisInvest Instagram: https://www.instagram.com/claytonmorris
Views: 41409 Morris Invest
AS 13 - Investment Accounting - Interest rule Part 2
 
22:18
Learn AS 13 - Investment Accounting for CA Intermediate (New Syllabus) Exam. In this video you will learn how to calculate debentures interest for investment accounting chapter. Also we have added a playlist, which contains a series of videos that will help you with understanding the logics how investment in shares or investment in debentures is to be accounted as per the Accounting Standards. We have also solved the sums of the ICAI study material. These Videos are developed by CA Yashvardhan Saboo founder of www.konceptca.com for more such videos please make a free account either at our website or our CA Intermediate Application. Link for CA Inter App - https://play.google.com/store/apps/details?id=com.konceptca.koncepteduipcc Please like share and subscribe, and also let us know your thoughts by a video comment!
Views: 1568 Koncept Education
Acquisition Accounting Business Combination | Advanced Accounting | CPA Exam FAR | Ch 2 P 3
 
12:11
Business combination, acquisition method, goodwill, 2 step test, goodwill impairment, advanced accounting, asset acquisition, stock acquisition, mergers, consolidations, acquisitions, consolidated financial statements, acquirer, acquiree, Investment in Subsidiary, statutory merger, statutory consolidation, advanced accounting, CPA exam, Takeover Premiums, Earnout, stock exchanged ratio, goodwill, normal earnings, excess earnings. estimated goodwill, offering price,
Equity Method of Investment (Old FASB) | Intermediate Accounting | CPA Exam FAR | Chp 17
 
18:14
Debt investment, equity investment, trading securities, available for sale, held to maturity, amortized cost, fair value, unrealized holding gain, unrealized holding loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, fair value adjustment
Calculating gain or loss for sale of property
 
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In this talk, I’ll go through the general gain or loss calculation, for sale of an asset. When you sell a property, the amount you receive as payment is called the sale price or the proceeds from the sale. While this amount is usually the cash you receive for selling the property, it also includes everything of benefit that you receive for the property. If the buyer assumes loans that you had on the property, that amount is included in the sale price. If the buyer trades you items or services for the property, then the fmv should be included. If you will receive payment over multiple years, then still include the total amount you will be paid as the sales price, but keep in mind that interest income must be accounted for first. Refer to my video on installment sales for more information about receiving payment over multiple years. If you dispose of an asset, without selling it, you may have 0 proceeds or if you receive any amount for disposing of the property, for example scrap metal payments, then include that amount as the proceeds. To calculate the gain or loss on sale of a property, subtract your adjusted basis from the total sale price. Often, the adjusted basis is the cost basis - which is what you paid to purchase it. Cost basis can be increased by expenses you paid to get the asset ready for its intended use, such as shipping costs and installation costs. Additionally, there are detailed rules for costs that can be added to or subtracted from cost basis, for calculating adjusted basis - for different types of property and situations. So, if your adjusted basis is less than the sale price, you have a gain - but if the adjusted basis is more than the sale price, you have a loss. So how does this gain or loss affect your taxes? Well, you can’t say on an individual basis - meaning looking at 1 property you sold, you can’t know how it will be taxed because it must be netted with all of your other gains and losses. This includes amounts that flow through to you, like activity in mutual funds, retirement plans, a partnership, or other types of investments. Refer to my video for how gains and losses are taxed and the netting process. Thanks for watching! Post your questions below!
Views: 13053 Business Finance Coach
Components of GDP | GDP: Measuring national income | Macroeconomics | Khan Academy
 
04:58
Thinking about how different types of expenditures would be accounted for in GDP Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/examples-of-accounting-for-gdp?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/income-and-expenditure-views-of-gdp?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 344845 Khan Academy
Advanced Accounting - Part 3 - Excess In Investment
 
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For more videos like this go to www.patrickleemsa.com. ___________________________________ NETWORK WITH ME! PATRICKLEECPA Twitter - https://twitter.com/patrickleecpa Website – https://www.patrickleecmsa.com ___________________________________________ Send a letter or send something cool about how you’re using these videos. Patrick Lee, MSA PO Box 936 Winfield, Kansas 67156 ___________________________________________ WORK WITH ME! CONTACT US: [email protected]
Views: 3340 Patrick Lee
Depreciation and opportunity cost of capital | Microeconomics | Khan Academy
 
08:10
How to account for things when you own the building instead of renting it Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/average-costs-margin-rev/v/marginal-cost-and-average-total-cost?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/economic-profit-tutorial/v/economic-profit-vs-accounting-profit?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Microeconomics channel: https://www.youtube.com/channel/UC_6zQ54DjQJdLodwsxAsdZg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 131686 Khan Academy
How to Make a Journal Entry
 
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This video illustrates how to make a journal entry in the general journal. It was prepared by Professor Anna Boulware at St. Charles Community College
Views: 1527207 am
How to Record Business Expenses: Paying with Owner Funds | QuickBooks Online US Tutorial 2018
 
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In this QuickBooks Online US tutorial you'll learn how to record business expenses paid with owner funds along with: - Learn about and set up equity accounts to track owner contributions - Record a purchase the owner makes for the business - Enter a deposit that the owner is making to the business' bank account Watch more Quickbooks Online step-by-step tutorials to learn all the QuickBooks tips and tricks for the United States: https://www.youtube.com/playlist?list=PLVxBmyedTVhSzh72-CSa-ZKhYB82pXkEM #QuickBooks #Entrepreneur #tutorial #QuickBooksOnline Start for free at QuickBooks.com. https://goo.gl/ctQRCV Check out more tutorials here: https://quickbooks.intuit.com/r/ Subscribe for more QuickBooks! https://goo.gl/jY1fyz Run your whole business better with QuickBooks. Be sure to subscribe to our YouTube Channel and if you have any questions, feel free to leave a comment! Visit QuickBooks.com for the latest! https://quickbooks.intuit.com Follow us on Facebook: https://www.facebook.com/IntuitQuickBooks Follow us on Twitter: https://twitter.com/QuickBooks Follow us on Instagram: https://www.instagram.com/quickbooks
Views: 31683 QuickBooks
Income and Expenditure A/c & Balance Sheet (with solved problem) by:- kauserwise
 
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▓▓▓▓░░░░───CONTRIBUTION ───░░░▓▓▓▓ If you like this video and wish to support this kauserwise channel, please contribute via, * Paytm a/c : 7401428918 * Paypal a/c : www.paypal.me/kauserwisetutorial [Every contribution is helpful] Thanks & All the Best!!! ─────────────────────────── Income and Expenditure A/c & Balance Sheet (with solved problem) in Financial accounting tutorial ( Receipts and payments, Income and expenditure, Balance sheet, Non - profit organization), Hope this will help you to get the subject knowledge at the end. Thanks and All the best. To watch more tutorials pls visit: www.youtube.com/c/kauserwise * Financial Accounts * Corporate accounts * Cost and Management accounts * Operations Research Playlists: For Financial accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnojfVAucCUHGmcAay_1ov46 For Cost and Management accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnpgUjlVR-znIRMFVF0A_aaA For Corporate accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnorJc6lonRWP4b39sZgUEhx For Operations Research - https://www.youtube.com/playlist?list=PLabr9RWfBcnoLyXr4Y7MzmHSu3bDjLvhu
Views: 644927 Kauser Wise
FAR Exam Marketable Securities
 
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Pulled straight from the FAR section of our CPA Review Course, this exclusive webcast features Roger Philipp, CPA, CGMA, teaching "Marketable Securities." Roger will help you to master this classic CPA exam "hot topic" through his uniquely motivational and dynamic delivery! Connect with us: Website: https://www.rogercpareview.com Blog: https://www.rogercpareview.com/blog Facebook: https://www.facebook.com/RogerCPAReview Twitter: https://twitter.com/rogercpareview LinkedIn: https://www.linkedin.com/company/roger-cpa-review Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: https://www.rogercpareview.com/professor-resource-center/ Video Transcript Sneak Peek: Alright, let's talk about marketable securities. Now, we're still talking about investments. We just talked about cost versus equity. That was cost 0 to 20% equity, 20 to 50. Now, we're going to talk about marketable securities, which again is still 0 to 20, however there is a market value, fair market value. So, as we look at marketable securities, we're going to see that there's different ways to account for them.
Views: 50003 Roger CPA Review
Inventory and COGS: LIFO vs FIFO
 
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In this lesson, you'll learn how Inventory and Cost of Goods Sold (COGS) differ under the LIFO (Last-In, First-Out) and FIFO (First-In, First-Out) methods. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also understand their impact on the financial statements. This lesson is ONLY applicable if you are in the US -- under IFRS, which most other countries follow, only FIFO is allowed. Table of Contents: 0:48 Why LIFO vs. FIFO Matters and a Simple Example 4:22 Real Life Example of LIFO vs. FIFO 5:18 LIFO vs. FIFO on the Income Statement 8:50 LIFO vs. FIFO on the Balance Sheet 10:22 The Average Method 11:15 If Inventory Costs Decrease Over Time... 11:48 Recap and Summary Why LIFO vs. FIFO Matters In our 3-statement "interview question" model, we assumed that COGS = Decrease in Inventory over a specific period. So the implicit assumption is: Change in Inventory = Beginning Inventory + Purchases - COGS. PROBLEM: What do you actually list for COGS? After you buy the Inventory, what should you record for the cost of Inventory once it's actually sold? Example: Let's say you order 100 units during the course of the year, and initially they cost you $10 each... but by the end of the year the cost has increased to $20 each. When you sell 10 units, do you use 10 * $10 for COGS, or 10 * $20? That's the core problem you face when recording COGS and Inventory, and there are 2 methods for handling it: LIFO (Last In, First Out): You use the cost of the latest items purchased (10 * $20). FIFO (First In, First Out): You use the cost of the earliest items purchased (10 * $10). It's not about which one is "better," but more about the trade-offs between these two methods -- how are Net Income, Inventory, and COGS affected? Impact on Net Income, Inventory, and COGS If inventory costs have been INCREASING: LIFO: Higher COGS, lower Net Income, and a lower ending Inventory balance. FIFO: Lower COGS, higher Net Income, and a higher ending Inventory balance. If inventory costs have been DECREASING: LIFO: Lower COGS, higher Net Income, and a higher ending Inventory balance. FIFO: Higher COGS, lower Net Income, and a lower ending Inventory balance. Compromise: Take the average numbers under both methods (many US-based companies do this in real life). This comes up in real life all the time, so you need to be aware of it -- and possibly be ready to make adjustments on the financial statements if companies you're comparing are using different standards for inventory and COGS. Further Resources http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-11-Inventory-LIFO-vs-FIFO.xlsx
Provision for Depreciation A/c and Asset Disposal A/c ~ Accounting for Depreciation
 
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Explained the procedure to prepare Provision for Depreciation Account and Machine Disposal Account. Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing
Views: 90662 CA. Naresh Aggarwal
Impairment Loss On Debt Securities (Bonds) Held As Available For Sale, Unrealized Vs Realized
 
15:08
Accounting for impairment of value of debt securities held as available for sale (bonds), Bond Loss in value is considered to be permanent therefore considered impaired, write down the cost basis to its new cost basis, example Bonds classified as Available For Sale (12/31/X1), (par value $800,000, amortized cost $800,000), Bonds are fully amortized (discount/premium), Impairment Loss: (Carrying Value - Fair Value) (800,000 - 740,000) = (60,000), Write down Cost, Do not amortize up to $800K maturity value, Adjust AFS Securities to fair value (12/31/X1) for any remaining AFS Securities, the previous Bond adjustment has now been realized as a Loss, Fair Value (12/31/X2) is now $760K, adjust Fair Value based on new cost basis (760K - 740K) = + 20K, detailed accounting by Allen Mursau
Views: 3720 Allen Mursau
Bond Issuance Examples
 
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Roger Philipp, CPA, CGMA, presents a basic bond issue with a face value of $1 million, term of 5 years, and stated or coupon rate of 8% in the video 11.01 - Bond Issuance Examples. He also shows the journal entries for issuance and interest payments at market rates or effective rates of 8%, then 10%, and then 6%. If the bond is issued to yield 8%, then the bond is issued at par and interest expense will equal the interest payment. If the effective interest rate is 10% then the bond is issued at a discount. Now interest expense will no longer equal the cash coupon interest paid. Roger explains how to set up the journal entry, keeping things simple for now with straight-line amortization of the bond discount. Roger continues the problem by showing in the journal entry how the issuer’s interest expense will equal the market rate of 10%. Finally, Roger walks through the journal entries for this 8% face rate bond issued at a premium with a yield of 6%. As an advanced bonus, Roger has us consider the effects of the bond interest payments on the statement of cash flows. Connect with us: Website: https://www.rogercpareview.com Blog: https://www.rogercpareview.com/blog Facebook: https://www.facebook.com/RogerCPAReview Twitter: https://twitter.com/rogercpareview LinkedIn: https://www.linkedin.com/company/roger-cpa-review Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: https://www.rogercpareview.com/professor-resource-center/ Video Transcript Sneak Peek: Now, next page it says issuance of bonds example and we're going to go through this example. Face value of the bonds, million dollars. Term, five year versus what? Term versus serial bond which matures in installments. Stated interest rate 8%. That's how much cash I'm going to get. I'm going to get 8% of a million dollars or $80,000 in cash but what am I earning? That's a different question. Then it says effective or market or yield is eight in example A, ten in example B, six in example C. Notice that we're going to be doing three examples. One is going to be eight, eight which is issued at par, issued at face. We don't have to worry about the discounted premium then we'll go to a discount example, then we'll go to a premium example and then life will be beautiful for you, things will make sense.
Views: 28023 Roger CPA Review
Fair Value Option for Long-Term Liabilities | Intermediate Accounting | CPA Exam FAR |Chp 14 p7
 
11:29
Debt investment, equity investment, trading securities, available for sale, held to maturity, amortized cost, fair value, unrealized holding gain, unrealized holding loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, fair value adjustment, equity method, investor, investee
Intro to Accounting for Operating Leases (New FASB Rules) | Intermediate Accounting | CPA Exam FAR
 
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Like us on Facebook: https://www.facebook.com/accountinglectures Visit the website where you can search using a specific term: http://www.farhatlectures.org/ Connect with LinkedIn: https://www.linkedin.com/in/mansour-farhat-cpa-cia-cfe-macc-2453423a/ A lease is a contractual agreement between a lessor and a lessee that gives the lessee the right to use specific property, owned by the lessor, for a specified period of time. In return for this right, the lessee agrees to make rental payments over the lease term to the lessor. 3. The lessors that own property include banks, captive leasing companies, and independents. Advantages of Leasing 4. In discussing the advantages of leasing arrangements, advocates point out that leasing allows for: (a) 100% financing at fixed rates, (b) protection against obsolescence, (c) flexibility, (d) less costly financing, (e) tax advantages, and (f) off-balance-sheet financing. 5. A variety of opinions exist regarding the manner in which certain long-term lease arrange¬ments should be accounted for. These opinions range from total capitalization of all long-term leases to the belief that leases represent executory contracts that should not be capitalized. The FASB requires capitalization of lease arrangements that are similar to installment purchases. In short, lease arrangements that transfer substantially all of the risks and rewards of ownership of property should be capitalized by the lessee. Lessee Accounting - Capitalization Criteria 6. (L.O. 2) For accounting purposes of the lessee, all leases may be classified as operating leases or capital leases. For a lease to be recorded as a capital lease, the lease must be noncancelable and meet one of the following four criteria: a. The lease transfers ownership of the property to the lessee at the end of the lease. b. The lease contains a bargain-purchase option. c. The lease term is equal to 75% or more of the estimated economic life of the leased property. d. The present value of the minimum lease payments (excluding executory costs) equals or exceeds 90% of the fair value of the leased property. If the lease meets none of the four criteria, the lease should be classified and accounted for as an operating lease. 7. A bargain purchase option is a provision allowing the lessee to purchase the leased property for a price that is significantly lower than the property’s expected fair value at the date the purchase option becomes exercisable. The 75% of economic life test is based on the belief that when a lease period equals or exceeds 75% of the asset’s economic life, the risks and rewards of ownership are transferred to the lessee and capitalization is appropriate. The reason for the recovery of investment test (90%) is that if the present value of the minimum lease payments are reasonably close to the market price of the asset, the asset is effectively being purchased. A major exception to the 75% and 90% rules is when the inception of the lease occurs during the last 25% of the asset’s life. When this occurs the 75% and 90% tests should not be used. Capital Leases for Lessees 8. Under the capital lease method, the lessee treats the lease transaction as if an asset is being purchased over time (installment basis). For a capital lease, the lessee records an asset and a liability at the lower of (a) the present value of the minimum lease payments during the term of the lease or (b) the fair value of the leased asset at the inception of the lease. In determining the present value of the minimum lease payments, three important concepts are involved: (a) minimum lease payments, (b) executory costs, and (c) the discount rate. 9. Minimum lease payments include (a) minimum rental payments, (b) any guaranteed residual value, (c) penalty for failure to renew or extend the lease, and (d) any bargain- purchase option. Minimum rental payments are the minimum payments the lessee is obligated to make to the lessor under the lease agreement. A residual value is the estimated fair value of the leased property at the end of the lease term. The guaranteed residual value is (a) the certain or determinable amount at which the lessor has the right to require the lessee to purchase the asset, or (b) the amount the lessee or the third-party guarantor guarantees the lessor will realize. This allows the lessor to transfer the risk of loss in the fair value of the asset to the lessee. 10. If the lessee guarantees the residual value, the present value of this residual value should be reported as part of the lease liability. If a bargain purchase option exists instead of a guaranteed residual value, the lessee should increase the present value of the minimum lease payments by the present value of the option price. In both the guaranteed residual value and the bargain purchase option cases, the lessee is committed to making these payments, and therefore the payments should be reported as an increase to the lease
Dividend Growth: The "Stealth Growth" Strategy That Flies Under the Radar
 
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Dividends are often associated with slow growth companies and defensive-minded investing. Yet this overlooks a couple of key facts. Dividends and dividend growth have historically accounted for the lion's share of stock total returns. Moreover, companies that are rapidly growing their payouts can be found in some of the fastest-growing sectors of the economy. This gives rise to a largely underutilized strategy: "Stealth growth" investing, which centers around buying quality stocks with a penchant for dividend growth. It's straightforward, proven effective, and now, for the first time ever at The MoneyShow, an elite panel of experts has been tasked to undo the mystery surrounding the stealth growth strategy. Come discover how (and why) it works, find out which sectors offer the most promising dividend growth, and scan the entire equity universe to uncover the best values. Courtesy of some true industry-leading experts, you'll take home specific stock ideas - including in tech and other growth sectors - each one set up to produce safe growth in ways that may have never even made your "radar" before!
Views: 5306 MoneyShow
4 of 10 Managerial Accounting Basics - 4 Activity Based Costing, Process Costing
 
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4 of 10 Managerial Accounting Video Lecture by Professor Bassell on this channel. Applied Manufacturing Overhead: A discussion of managerial accounting concepts by Professor Myles Bassell. Professor Bassell discusses applied manufacturing overhead. He discusses and illustrates how to calculate the equivalent units of product and the weighted average method. He explains how to calculate the conversion cost and prepare a cost reconciliation report. Professor Bassell mentions the difference between costs to be accounted for and costs added to production. Professor Bassell emphasizes the importance of allocating costs and focusing on activtiy instead of volume.
Views: 23438 Professor Bassell
Are Plastic Pallets An Asset? Pallet Cost & ROI Explained
 
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Are plastic pallets an asset or expense? What advantage do strategic companies see? When a customer plans to use a pallet over and over, the pallet is considered an asset. Read more: http://www.tranpak.com/plastic-pallets/important/part-2 Plastic pallets were born of the concept of reusability so that customers could buy pallets much less often. In these applications, pallets can be accounted for as depreciable assets and return on investment (ROI) is the key factor behind a purchasing decision. PALLET COST & ROI Sometimes customers get a sticker shock when they hear of a pallet costing $60, $70 or $125. This initial cost must be ignored. The return on investment must be the priority. A $70 pallet that lasts for three years is far cheaper than a $6 wood pallet that lasts for three weeks. And payback is received in approximately eight months. These types of plastic pallets are purchased because internal operations are looking at cost cutting strategies. They are often called reusable pallets, distribution pallets, racking pallets, warehouse pallets or captive pallets. The plastic material, design and processes are different than those for single use pallets because the pallets have to be stronger and more durable to yield an effective ROI. To see the full range of TranPak's reusable plastic pallets go to: http://www.tranpak.com/plastic-pallets/reusable Are plastic pallets an asset? YES, when correctly matched to your needs. For more information to help your purchasing decisions, please contact us. Our main office and warehouse is in Fresno California and we have distribution warehouses around the US. TranPak 2860 S. East Ave. Fresno, CA 93725-1909 (800) 827-2472 [email protected] http://www.tranpak.com Video produced by Web Marketing Perth http://webmarketingperth.com.au Music used in this video: Niles Blues by Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0 http://www.youtube.com/watch?v=H4MUnZ709ME
Views: 8105 TranPak
Investing vs Trading | What's the difference?
 
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Do you Trade or Invest in Stocks? Not understanding the difference could cost you! In this video, I give you a precise explanation of that difference... Don't forget to subscribe and click the bell! ------------ Discover ------------ 0:40 - 4 categories to describe putting money into stock 1:04 - What it actually means to INVEST 2:54 - Side-by-side Investing vs Trading 3:57 - Examples of TRADING 5:17 - Why it's important for you to understand this difference ------------ Contest ------------ Win LIFETIME "SC Insider" Patreon access + more! Learn More: SpicerCapital.com/Contest ------------ More Tips and Training ------------ -- https://www.Facebook.com/SpicerCapital -- https://Twitter.com/SpicerCapital -- https://www.LinkedIn.com/company/Spicer-Capital/ ------------ Other Resources ------------ PATREON - Want inside access to all my best research? Okay, here you go: https://Patreon.com/StephenSpicer BOOK - Get your copy of "Stop Investing Like They Tell You." In stores Fall, 2018. Learn more at https://SpicerCapital.com/Book AUDIOBOOK - Until my publisher makes me take it down... download the audiobook version of my book for FREE at https://SpicerCapital.com/SILTTY SPICER CAPITAL UNIVERSITY - Take advantage of the free, 4-hour, gamified, video course designed to help you better protect and grow your life savings. Check it out at https://University.SpicerCapital.com INNOVEST - Want Spicer Capital to manage your money? Our fees start at 0.2% per year with your first $10,000 entirely FREE (that's 0.0%)! Learn more at https://InnovestInYourFuture.com ABOUT - Learn more about me (Stephen Spicer) and Spicer Capital: https://SpicerCapital.com/About ---=-=-=-=-=-=-=-=-=-=-=-=-=--- Clips from: https://getyarn.io/yarn-clip/af50b0a4-59e5-4419-8f0f-bdcd05a030d4 https://getyarn.io/yarn-clip/6a6bc39c-b404-4cfa-aae8-e1da1ae9150b Warranties & Disclaimer Spicer Capital, LLC is a Registered Investment Advisor. This channel and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy. This channel and information are not intended to provide investment, tax, or legal advice. Please see my full disclosures at: https://SpicerCapital.com/Disclaimer
8. Value a Bond and Calculate Yield to Maturity (YTM)
 
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Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we began to understand the important terms that truly value a bond. Since most investors will never hold a bond throughout the entire term, understanding how to value the asset becomes very important. As we get into the second course of this website, a thorough understanding of these terms is needed. So, be sure to learn it now and not jump ahead. We learned that there are two ways to look at the value of a bond, simple interest and compound interest. As an intelligent investor, you'll really want to focus on understanding compound interest. The term that was really important to understand in this lesson was yield to maturity. This term was really important because it accounted for almost every variable we could consider when determining the true value (or intrinsic value) of the bond. Yield to Maturity estimates the total amount of money you will earn over the entire life of the bond, but it actually accounts for all coupons, interest-on-interest, and gains or losses you'll sustain from the difference between the price you pay and the par value.
Views: 379634 Preston Pysh

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