The Accounting Equation Explained + Practice Problems | Financial Accounting Module 2

Описание: In Module 1, we learned the key terms. Now, in Module 2, we put them to work using the fundamental Accounting Equation: Assets = Liabilities + Equity.

This video is purely practical. We will solve 4 distinct business scenarios together to understand how the equation balances, including a tricky case where Shareholder's Equity is actually negative (accumulated deficit).

In this lesson:

Recap of the 6 key terms from Module 1.

The Formula: Assets = Liabilities + Shareholder's Equity.

Practice Problem #1: Finding Assets.

Practice Problem #2: Calculating Liabilities.

Practice Problem #3: Determining Equity.

Advanced Case: Understanding Negative Equity (Insolvency).

✍️ Homework Challenge: Test your knowledge!

⏱️ Timestamps: 00:00 - Intro & Recap of Module 1 00:33 - The Accounting Equation Formula 00:49 - Problem #1: Calculating Total Assets 01:28 - Problem #2: Finding Liabilities 01:58 - Problem #3: Calculating Shareholder's Equity 02:23 - Problem #4: Can Equity be Negative? (Tricky Case) 03:08 - 🧠 Homework Challenge (Business #5)

👇 SOLVE THIS IN THE COMMENTS: Business #5 Info:

Assets = $120,000

Shareholder's Equity = -$85,000 (Negative)

Question: What are the Liabilities?

Drop your answer below! I'll be shouting out correct answers in the next video.

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