## Indispensable Tools for Financial Statement Analysis

a subtotal is the sum of two or more items usually the items are summed because they belong to the same category the subtotal is then summed with other subtotals and we subsequently arrive to the total for example the subtotal that you see here aggregates the group of fixed assets this subtotal is later […]

## A practical example

okay it is time for a practical example earlier we talked about the five criteria that determine whether we can register revenue let’s describe a few regular business situations and see whether these criteria are satisfied shall we yes let’s do that imagine you own a juice bar and you sell orange fresh five dollars […]

## Understanding the Time Value of Money

Oh the core principle of Finance is that money today is more valuable than money tomorrow the rationale behind it is that money that we receive today has a potential earning capacity this is why every person prefer to receive money sooner rather than later and hence timing is one of the most important topics […]

## The Accounting Equation and Its Importance

hi welcome back this is 365 careers accounting course so we’ve learned what accounting is and why it is useful the four types of accounting the three main financial statements and also some details about the accounts that form each of these statements you should feel pretty good about the progress that we are making […]

## Intangible assets with finite life vs Intangible assets with infinite life

right in this section of the course we are talking about long-lived assets and to be honest we are making excellent progress so far whenever we consider intangible assets there is one important distinction we have to make there are intangible assets with a finite life and there are also intangible assets with an infinite […]

## A technique to collect trade receivables sooner

right this lesson will be a short one but that doesn’t mean it isn’t important a great way to encourage customers to pay their invoices as soon as possible and free up our capital is to offer a discount on the total amount they owe us if they pay sooner let’s say company X issues […]

## The three financial statements

Financial Accounting revolves around three main statements the income statement also known as profit and loss or simply P&L the balance sheet and the cash flow statement each serves a different purpose and contains important information about how a business is running the income statement answers the question how did the company perform throughout the […]

okay excellent now that we know what working capital is and why companies need sufficient working capital to carry out their core business operations we will use this lesson to dig deeper and explain the trade off businesses face when they try to optimize their working capital there have been many businesses some quite profitable […]