BASICS OF ACCOUNTING "ACCOUNTING BY SONIA SETIA".

ACCOUNTS BY SONIA SETIA

IN THIS VIDEO YOU WILL UNDERSTAND THE BASIC TERMS OF ACCOUNTING,LIKE ASSETS ,LIABILITIES, INCOME ,EXPENSES, CAPITAL , DRAWINGS ETC. DO SHARE WITH YOUR FRIENDS. THANKS AND REGARDS.

Transcript

00:00None of that accounting is boring stuff here.

00:03Let's dive into the five major heads of accounting.

00:06Accounting can be broken down into five major heads.

00:09Ready? Let's go!

00:11Number 1. Assets.

00:14These can be tangible, like buildings and computers,

00:17or intangible, like goodwill and trademarks.

00:20Tangible assets are further split into non-current and current assets.

00:24Non-current assets are long-term, like land and machinery.

00:28Current assets are short-term, like cash and stock.

00:31Simple, right?

00:32Number 2. Liabilities.

00:35These are what you owe. Think loans and bills.

00:38Number 3. Income or profit.

00:40That's the money you make.

00:42Number 4. Expenses and losses.

00:45These are the costs of running a business, like rent and salaries.

00:48Finally, number 5. Capital and drawings.

00:51This is the owner's stake in what they take out for personal use.

00:55Easy to remember and super helpful.

00:57Got it? Great!

00:59Stay tuned for more tips from Account Simplified.

01:02Thanks for watching. This is Sonia Sadia signing off. Goodbye.

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