Activity
Mon
Wed
Fri
Sun
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
What is this?
Less
More
Memberships
Ten Talents
108 members • Free
5 contributions to Ten Talents
Mar 21 •
Cash vs Accrual: What Matters to Buyers?
Do you think buyers trust cash accounting or accrual accounting more? Support your answer and engage with someone else’s comment to discuss their perspective. This is how you start thinking like a trusted financial advisor.
1 like • 11d
I believe buyers trust more accrual accounting because just as the example was stated in the video, if you were to sell tons of products but did not receive the cash for those products until the following month the month you sold products doesn't look profitable. You're not able to see how profitable the business would have been for that month unless it was under an accrual method. It's important to show the profitability of a business to those interested in purchasing a business to spike their interest even more.
Mar 21 •
Test Your Knowledge
In the Accounting Cycle course, John bought a car. Now he asks: “How will my financial statements be affected if I pay off the $45,000 loan in three months?” Comment your answer below. Explain how this decision would affect the Income Statement, Balance Sheet, and Cash Flow Statement. Think through the full picture, not just one piece.
1 like • 11d
Income Statement: Expensed the interest amount of the $45,000 for each payment made to pay it off and the depreciation over time. Balance Sheet: Cash would reduce to pay the loan off and so will liabilities. Equity will slightly reduce with depreciation and interest paid off. Cash Flow Statement: financing activities would reduce by the principal amount and operating activities by the interest amount.
Mar 21 •
Create Your Own Problem
Create a realistic accounting problem similar to the examples shown in the lesson. Post it in the comments. Find someone else’s problem and reply with how you would solve it.
2 likes • 11d
Your company operates on an accrual basis. They purchase $15,000 worth of inventory on a line of credit and do not receive it until the following month. How would this be recorded?
1 like • 11d
@De'Shaun Stewart This one had me thinking! When recording the accrual entry for March you would Debit Expenses and Credit accrued liabilities. After receiving the invoice you would debit accrued liabilities and credit accounts payable.
Mar 21 •
Which Financial Statement is Hardest?
The three financial statements each tell a different story. Which one has been the hardest for you to understand?
1 like • 11d
I want to become more comfortable understanding the cash flow statement. I've seen a balance sheet and a profit and loss statement but I've actually never seen a real cash flow statement before. Excited to learn how it works!
1 like • 11d
@De'Shaun Stewart I'm also uncomfortable with statement of cash flows but I have to admit the Profit and Loss Statement is where I understand things the most. We'll learn these things little by little.
Mar 20 •
Step 1: Plant Your Flag🏁
This is your first step to achieving your career goals as you become a better business financial professional. Write the following: 1️⃣ Where you are now 2️⃣ Where you want to be in 6 months 3️⃣ The steps you’ll take inside this community to get there Big progress starts with clear direction.
1 like • 12d
I am currently an accounting assistant for a university here in GA In 6 months, I want to start a bookkeeping business and have my first client To get there, I will learn Quickbooks and start offering my services!
1-5 of 5
