Name: Accounting 1: Program #2 - "Basic Accounting Concepts"
Uploaded: 2018-06-23T12:50:38.000Z
Duration: 52 min 26 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Hello, I hope everybody's semester is starting out well. This is the first official lecture

of Accounting 01. Now, everybody should have had a previous session where we talked about

class policies. For you face to facers we did that last time we didn't film that, and

for you people at home I did a separate filming and taping of going through the class policies

for you, so please make sure those folks at home are taking this as an online class that

you watch that don't just skip it thinking it's not going to be important. It's very

important to succeed in this class I want you to know how we're going to do things so,

for the people watching at home on You-Tube or on DVDs, or on that cable TV channel never

skip the lectures ok, watch them in sequence watch the whole thing. If you try to shortcut

it you'll do yourself harm so, at this point everybody knows the class policies and procedures

and everything we're going to go ahead, and start the subject of accounting now, I always

like to say at the very beginning some people have to take this class, and it's like "oh

I wish I didn't have to take this, but I have to it's required" some people want to take

it. Truth be told out of the fifteen of you here there's maybe only one or two who want

to be a full-time accountant someday so sometimes the question comes up "why do we have to take

accounting", and I'll tell you. Several reasons, but one of them is statistically speaking

about half of you are going to own, or co-own a business sometime in your life. Now it may

not be your sole source of making money, but it may be just an ancillary income, but you

will own or co-own a business. Now I've talked to some of you, and a lot of my students they

want to be entrepreneurs, they want to own a business someday. Well if you do that you

need to know accounting at least at some level, and you might say "well I'll just hire somebody

to do my accounting", but what's the problem with that? Anybody know? It costs money, and

what's the other one? you might get ripped off. You can look at the business section,

and see what happens when a business owner gives all of their accounting responsibilities

to somebody else. It's like "will we trust that person?" I could tell you horror story

after horror story from my days as a Financial statement Auditor of small businesses that

somebody ripped them off, because that person didn't know accounting at all. So, maybe you

won't do all the book keeping, but you at least at some level need to know accounting.

Accounting is the language of business, plus, wherever you all end up working there's going

to be a bottom line. There's going to be a net income that you need to meet, right, I

mean JCCC isn't out for profit, but we concentrate on that bottom line too. We have to stay afloat

don't we? In your own homes you have financial situations right? So, the language of business

is accounting, it's very important to know, so I know there are a lot of reasons for being

in this class, but I want you to remember that there's basic concepts of business, and

how important it is to apply to accounting. The first thing I want to do is go over and

you should have the PowerPoint slides for you folks here in the face to face. I handed

these out to you, and for you folks at home, I have these on ANGEL under the lessons tab.

I thinks it's very beneficial to have these so, you don't have to copy everything down

that's on the screen, and you can just take notes to the side, or however you'd like to

do it. Let's go ahead and go through the very first slide for chapter one, and that is going

to be kind of the definition of accounting. I spend a lot of time on this slide so don't

think that every slide we do we'll spend this much time on, but I think this is a real nice

definition, and I'm not the type of teacher who's going to give you a test question that

says "write out the definition of accounting", because truth be told you can find another

text-book, and it probably would be slightly different, but this one has a lot of good

aspects, and I want to concentrate on that a little bit. It says accounting is a system

that identifies, records, and communicates information that is relevant, reliable, and

comparable to help users make better decisions. Let's go off the PowerPoint, and come back

and I want to step away from that for a second, and take you to a different example I think

will help flesh out that definition. Let me write something down here that has absolutely

nothing to do with accounting, and tell me if anybody knows what I'm doing? I'll give

you a clue it has to do with sports. I'm sure you're all like what is he doing? Right, any

idea what that is? Anybody want to make a guess? It has to do with basketball. Anybody

here play basketball? You've watched basketball right? You know what a free throw is right?

It's when a player gets fouled they go to the line, and they shoot free throws, right?

Well, one of the things I did in high school (I love basketball still do), but I couldn't

make the basketball team at my high school. So, what I did and this sounds like a geeky

future accounting professor thing to do - I kept stats for the basketball team. Traveled

around with them, and kept stats. So, let's go back to this do you see how this applies

to free-throws. What this meant is player twelve got fouled, and he went to the line

for two free-throws he missed the first one, so I didn't color in that bubble, and he made

the second so I colored that in, you with me? Okay then player seventeen got fouled

for two shots he made both of them so I colored in the bubbles. Number nine player got fouled,

and that looks a little different doesn't it? Anybody want to venture a guess what that

is? Not a technical - do you know what a one and one is? Certain types if you get fouled

you don't get two free-throws, but if you make the first one you get a second attempt.

Does that make sense? So I would draw that kind-of like a little cherry. So, this guy

got fouled and he made the first one, so he got a second attempt, right? If he wouldn't

have made the first one it would have just looked like that. This one has just one bubble,

what does that mean? Anybody want to guess? He made the shot, but he got a free-throw

so, if you get fouled while making a shot you make the basket, you get one free-throw.

Now, why do I show you this, because this has nothing to do with accounting? Well this

is one of the things as a basketball statistician that I kept track of for the coaches. Now,

the next day when I would come to school do you think the coach wanted me to hand him

this report, with the bubbles? Go back to the screen do you think that this is what

they wanted? What did they want? They wanted a condensed report, and I made out just a

sample report ok, this is kind-of what they wanted. This is a free-throw report for Northwest

vs. Southeast on October 20, 2011. This is the player Jones. This is the free-throws

attempted eight, and he made 4 free-throws, so he shot fifty percent. Smith went to the

line, and attempted ten free-throws only made eight, and shot eighty percent, do you see

what I'm saying? This was the report I gave the coach. Now, why would the coach care about

having this information? To know who the best free-throw shooters are may be there's a technical

during the game, and who would you want to put to the line, probably your best free-throw

shooter, right. You'd want to know who needs to work on free-throws, who's getting better,

who's getting worse, right. Do you agree if you were a basketball coach a report like

this would help you make better decisions, is that correct? Let's go back to the PowerPoint

definition, and let's apply this to the basketball example I just gave. That was a system that

identified, recorded, and communicated, wasn't it? For instance I would hear the whistle

blow, and it would identify that I need to record something, correct? It identified that

somebody was going to go to the line, and I needed to record it with that little bubble

method, and there's nothing magical about that little bubble method. I didn't make it

up as a common way to keep track of free-throws. Eventually I would need to communicate that

to my coach, right. Now, I would communicate it so it would help him make better decisions.

However, for it to be able to help him to make a better decision, it had to be relevant,

reliable, and comparable, what does that mean? Let's talk about that, what does it mean to

be relevant? To be relevant means it needs to be in regards, to the game that he's concerned

about, right? What if I were to give him the free-throw statistics for the 1972 Olympic

Games between Russia and U.S.A., is that relevant? Is that going to help him make a better decision?

No. So, it has to be relevant, it has to be related to what he's concerned about. It has

to be reliable. What if I don't know what I'm doing as a statistician - is it going

Subtitles ListPlay Video

Accounting 1: Program #2 - "Basic Accounting Concepts"

relevant

eventually

revenue

sense