This is a well presented video. Since I do the same content, allow me to borrow some of your style in my student accounting series.... Congrats and great job.
How this will works in a scenario like mine. Let's say we planning to open small business (Soap Factory). Total of 4 persons owned the business. We decided to collect $5000 each (Which is $20,000) to start the business and we collect all money in business account. 1) For Operating Activities: - Spending on soap materials - Spending on employees - Spending on building rent - Revenue from Soap sales 2) For Investing Activities: - Purchase of Soap machine 3) For Financial Activities: - Cash received from bank - Cash spend on loan repaid My question is how do we label money that we collected to start the small Business? I guess, what's the name for it? PS: I'm loving your videos. We decide to open a small business so I decided to research on ACCOUNTING.
You will need to record those things on your balance sheet and income statements as well. If you're really opening a business, maybe look into a CPA to help you out.
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