What Does Equity ACTUALLY Mean?

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Discover what Equity means in Accounting. This episode is part of a series exploring Accounting Basics. To see the whole playlist check out the link below. In this Accounting tutorial you’ll find the definition of Equity in Accounting. You'll also learn how Equity is made up of Capital Contributions, Retained Earnings and Withdrawals. And as if that wasn't enough, you'll also find the link between the Income Statement and the Balance Sheet in the context of the expanded Accounting Equation.
⏱️TIMESTAMPS
00:00 - Intro
01:35 - Equity definition #1
02:37 - Equity definition #2
04:37 - How to structure your business?
04:44 - Sole Proprietor
04:50 - Partnership
04:43 - Corporation
05:29 - Capital Contributions Explained
07:27 - Retained Earnings Explained
08:52 - Withdrawals Explained
09:39 - How the Expanded Accounting Equation works
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#accounting #accountingbasics #accountingstuff

Опубликовано:

19 июн 2024

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Комментарии : 1,1 тыс.

@gregoryegharevba1709 3 года назад

I hate accounting, I like accounting when explained like this... wow.

@sapsalingpusacattalkmaykwe1556 2 года назад

Agree! That's why I tried Course this then next BSIT

@LiaPourpre 5 лет назад

''let me know in the comments if you want to hear more about it'' -ARE YOU KINNDING? I WANT TO HEAR MORE ABOUT EVERYTHING! YOU ARE THE BEST EVER! Please dont ever stop teaching us what you know! these videos are so good! never thought i would enjoy accounting this much! Thank you!!!!

@AccountingStuff 5 лет назад

Haha, thanks for the kind words!! Glad to hear that you are enjoying the videos. I don't plan on stopping any time soon!

@a.c.n.9421 5 лет назад

Ditto!

@cz5240 4 года назад

Same! It's so concise and clear and fun!!!

@shadowslayerblack2421 3 года назад

ikr?

@salty_kenz5080 3 года назад

lmao

@marieclaudettegarella2038 4 года назад

I love this man, he taught me in 10 minutes what I couldn’t learn in several lectures! Thanks James, god bless you

@AccountingStuff 4 года назад

No problem Marie, happy to hear that it's making sense

@yairopro 3 года назад

So true

@meopup 3 года назад

Hallelujah!

@BlessGodMinistry 3 года назад

Amen

@randallgraves5289 3 года назад

For real. I've been researching this all day, and nowhere else was it broken down this clearly.

@yejin5315 5 лет назад

You are much better than my accounting teacher.

@marctyson4701 4 года назад

haha, i am an accounting teacher; and he is better than me

@salty_kenz5080 3 года назад

samee

@blast2686 4 года назад

I slacked off during high school. This is one of the main reasons, why I can't cope up with my college accounting lectures and tests. I haven't got the basics of accounting down hence the crisis. Then one day I stumbled upon this channel and mark my words, this is one of the best things that ever happened to me in my entire life.

@AccountingStuff 4 года назад

Sorry to hear that you've been having a tough time at college. I hope it all gets easier for you. I'm here to help, so if you have any questions please let me know

@dukebaloof2540 Год назад

I completely fucked up my life too, now we'll never be able to catch up.

@waterfoker8558 Месяц назад

Same, took me a decade to finally understand, it's SO EYE OPENING

@cpsystems4092 Месяц назад

@@waterfoker8558it’s weird aye, how we just all of a sudden… realise

@timothyparris2791 5 лет назад

I wish these videos were around during my first semester of college. You do a much better job explaining these topics than my fundamentals professor did. Well done!...

@AccountingStuff 5 лет назад

Cheers Tim!

@jisulim1326 4 года назад

Fortunately i am watching this in my first semester!! 😆

@creators4817 3 года назад

I have a masters degree and you helped me learn this better than my teachers did

@luisfernandolt 4 года назад

I’ve always had trouble with equity, I usually just forget. This video has made me realize how easy is to understand equity. I love it.

@AccountingStuff 4 года назад

Great to hear that it's making sense for you!

@LuxuryCarEnthusiast 3 года назад

The best part of this videos was the fact that you and your brother are involved in removing plastic pollution! Good Stuff

@yairopro 3 года назад

This is probably the best video on financial literacy in all youtube. It makes things so clear ! Thanks a lot for your great work.

@AccountingStuff 3 года назад

Cheers Yair, glad you enjoyed it!

@nefertitimontoya 5 лет назад

You're an incredible teacher and filmmaker 😭 so clear and understandable and engaging

@AccountingStuff 5 лет назад

Thanks that is kind of you to say!

@waseemyousafsofi7122 Год назад

Teaching is an art, and that art is in you. Mr. Artist. A huge support and respect.

@christinaahn1887 3 года назад

You can see all the effort that he puts into his videos!! It's so neat and organized!! Thank you James! :)

@AccountingStuff 3 года назад

I try :)

@inongenawalifanu7656 4 года назад

Now you are what I call a great teacher!! Things are ever so clear now, even the text books don't explain stuff this way...thank God for you James!!!!!

@AccountingStuff 4 года назад

Thanks you are too kind! Happy to hear things are clear for you

@avaceleste Год назад

Amazing how confusing it can be until someone explains it so clearly and simply as you do!

@jaydios1574 3 года назад

Your videos are invaluable to my learning. The production quality is superb; thank you for your hard work!

@deeznuggs6757 3 года назад

For those who still don't get the accounting equation Think of Assets as 20 Liabilities 10 Equity 10 You just need to balance them to 20=20 no matter what you do. This is all there is to it, you only need to understand what accounts fall in each category.

@donnychau4 3 года назад

is it bad to have more assets then liabilities and equity? Is it does go over, what happens?

@StXGaMeRalli 2 года назад

@@donnychau4 You will never have more assets because assets = liabilities + equity

@campbellblk7484 Год назад

Well thanks for simplifying it. Still not sure what equity means but I’m close to figuring it out.

@maxmacciolli2556 Год назад

@@campbellblk7484 equity is the shareholders’ claims on an entity’s assets

@whatuwantfromme3421 Год назад

@@campbellblk7484(Equity is made up of Retained Earnings (profits) and Capital contributions from owners (aka money owners put into their business. And there is different words for capitbal contributions depending on the business type. Owners equity, Partner contributions, Shareholders Equity). So Assets = Liabilities + Equity (Capital Contributions & Retained Earnings) And equity is considered "what you owe to the owners" because of the fact that the owners are the ones making investments into the business/company so that it can become profitable in the future. And Retained earnings is labeled as "what you owe to the owners" because since the owners are the ones taking their own money and investing it into the business, some of the retained earnings (profits) need to be paid to them. Because thats basically what investing is. You put money up to help someone, and then you get profit back when they make profit. So thats why retained earnings is considered "what you owe to owners"

@Arvy565 3 года назад

you should also start a course(maybe in another channel) on how to make and edit videos like an expert! your videos are truly amazing and you are really talented in it

@AccountingStuff 3 года назад

Thanks for your suggestion!

@meherunnessa4347 Год назад

I took giant notess.. thank you so much.. you are such a great teacher.. i was so confused between capital and equity..best channel

@rumana5696 3 года назад

I really have no idea how many times I repeat watching the same video again and again for more clear memorization. I don't know how to thank you. Am waiting for your upcoming videos. You are always best in teaching. God bless you.😇

@MahmoudElghoneimy-mahghoneimy 4 года назад

Man, you're simply awesome; I like how you divide the content into short simple videos of 11 min (Y) This helps a lot; making it more digestible... Keep your awesomeness going and hope you get lots of subscribers and viewers; don't give up

@AccountingStuff 4 года назад

Hey Mahmoud, thanks for your feedback. It's motivating to know the videos are making a difference. I don't plan on stopping anytime soon.

@dylanhenderson122 4 года назад

You are literally the best educator ever. I can literally just watch your videos to study.

@AccountingStuff 4 года назад

Thanks for your kind words! All the best with your studies

@urvifood6105 4 года назад

this video saved me sooo much time. I am so grateful. Thank you for your work!

@honggwan. 2 года назад

Thank you. The video explained "equity" so much better than an accounting professor I had back in college. This provided a clear picture! Pressed the like button.

@AlignacademyTV 4 года назад

This has to be the best explanation of equity on the Internet. Thank you, James.

@AccountingStuff 4 года назад

Cheers mate!

@lanah5283 3 года назад

I've started studying for my level 4 ATI exams and these videos are worth their weight in diamonds let alone in gold! Cheers for making these, you're a legend 😁

@AccountingStuff 3 года назад

Good luck with your studies :)

@sebastiansudacki8920 4 года назад

3:16, great explanation of why the word "equity" is so connected with "ownership". I very much appreciate your work!

@AccountingStuff 4 года назад

Cheers Sebastian!

@andrewreese9802 Год назад

I'm an accounting instructor and I've watched nearly all of the videos. This is probably the best one, really marvelous.

@drivingunicorns 4 года назад

I really think your videos are useful and helpful! Keep making more :) SO GOOD

@AccountingStuff 4 года назад

Thanks Antoine, I have many more planned for the future!

@hayatmahamud1099 3 года назад

these accounting videos you make are better than all the others put together and trust me theirs a lot.

@AccountingStuff 3 года назад

Thanks for your kind words!

@jeicee4773 Год назад

You simplified everything and now I understand accounting after so many years

@kristianelias8009 Год назад

That was an absolutely wonderful conclusion, you tied everything together so well. Marvelously done, my man.

@kyuxiu 5 лет назад

I have an accounting exam tomorrow morning and your videos have helped me so much more than my teacher has for this entire year! Thank you so so much ^_^

@AccountingStuff 5 лет назад

Good luck! Hope you smash it!!

@josephjohnson8726 4 года назад

I have one Monday. The video's are helping

@mohamedgomaa6852 4 года назад

i wanna know more about the entities types and what are the differences

@amyroper5789 2 года назад

These are the best accounting videos I have ever watched !! Very informative and helpful

@newtondias2956 5 месяцев назад

Effective teaching is a gift, many needed this back in my days. In Namibia, accounting is done from the 8th grade to 12th grade (junior and senior high school). Many kids didn't like it because the teachers didn't explain as well as it was explained on this video.

@onlyonemitch5049 4 года назад

Consider yourself my study partner Love from Africa✌

@syafiqaiman7305 4 года назад

if you become my accounting lecturer,I think I can get always 4flat with A+ grade😂

@MusicInMae 4 года назад

Dude your editing and way you come off to explain these basic topics are on point. I hope your content remains to be this high quality as you continue to make these videos. It's the small things that make it more enjoyable to watch and listen

@AccountingStuff 4 года назад

Thanks mate, that is kind of you to say! Some of the small things take the longest time to edit but I'm glad to hear that you're enjoying them

@sammartins2096 2 года назад

currently binge watching the entire series ahead of my accounting exam next week haha. thanks for the help!

@nasm5542 4 года назад

My teachers never taught about these😂💗

@nefertitimontoya 5 лет назад

Accounting stuff: *mentions Vancouver* Me: *pikachu meme* Edit: the talent in this city constantly amazes me

@AccountingStuff 5 лет назад

Are you in Vancouver too?? I love it here!

@DigitalMediaCanada 4 года назад

@@AccountingStuff Vancouver is absolutely beautiful. Love it there.

@SergiuM42 2 года назад

Love your channel. You take rather complex concepts and break them down into easy to understand ways.

@donfrancis1246 4 года назад

This is best video on equity and balance sheet. For a somewhat novice like me, you are a saviour. I learned a lot more over a short time span in comparison to hours I spent in the previous days trying to get my head around it. Also, this will be the only video I need to rewatch whenever I need a quick recap.

@AccountingStuff 4 года назад

Thanks Don, I'm glad to hear that you're finding the vid useful!

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@josephlee4001 Год назад

With the assistance of an investment advisor, I was able to diversify my $401k portfolio across multiple markets, earning over $980k in net profit from high dividend yielding stocks, ETFs, and bonds in just a few short months.

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He appears to be well-educated and well-read. I ran a Google search on his name and came across his website; thank you for sharing.

@anammkhalid Год назад

Wow just wow. U r a natural. I’ve been out of touch of accounting. Your videos are helping me learn again even better.

@suzy5166 Год назад

You are the best teacher ever 🙏🙏🙏 even I have worked in finance for many years but struggling to explain accounting in plain words!

@blanche1935 4 года назад

Just started financial accounting this semester and will have management accounting too next month and your videos are lifesavers. I am really enjoying accounting thanks to you, as I never thought I could wrap my head around debits and credits. Thanks a lot, James and keep up with the awesome work!

@AccountingStuff 4 года назад

Thanks, I am happy to help! All the best with your financial accounting course. Hope you crush it!!

@yallappakanbargi4004 Год назад

I also thought from our seniors that accounting is very tough subject but after watching you vedio😊 it is like 2 mins maggie love you and your explanations from🇮🇳🇮🇳🇮🇳

@oscarramos6364 2 года назад

These videos show how much he knows that he is able to explain it so well. Ill continue watching all his videos

@AccountingStuff 2 года назад

Thanks Oscar, hope you find them useful :)

@trevorsamuel3873 2 года назад

Wow why wasn’t I taught like this? It seems so captivating and fun. Would love to see more and more topics of accounting. Thanks james!

@greatsucceeder4516 2 года назад

This is by far the best explaination So far, it will help me teach my students

@Aji2358 3 года назад

Thank you so much, I kept reading and watching vids about equity and could not understand it. You simplified it perfectly

@AccountingStuff 3 года назад

No problem Andres! Hope it's making sense for you

@1354sidebyside Год назад

Excellent way of putting many hard-to-grab financial terms into perspective. Thank you!

@dearjem 4 года назад

thank you so so much for this! truly feel like i understand so much better now! i like how you break down the definitions bit by bit, and then piece it all together again by looking at the whole picture :) thanks and keep making these vids!

@AccountingStuff 4 года назад

No worries, you're very welcome. It sounds like Equity is clicking for you which is great to hear!

@jakefromstatefarm2991 3 года назад

I took both financial accounting and managerial accounting, and I literally understand more of accounting from your videos. THANK YOU SO MUCH, i'm going to take intermediate accounting, so I'm refreshing my mind lol.

@AccountingStuff 3 года назад

Nice one! Best of luck with it all :)

@RosaSanchez-em4gi 4 года назад

You are an amazing teacher! I was having so much trouble and I greatly appreciate your time you have put into these videos!

@AccountingStuff 4 года назад

Thanks Rosa! Sorry to hear that you've been have a rough time with accounting. Hope it's beginning to click for you

@terisayers-cooper7828 Год назад

Over 30 years since I did accounting as part of my degree. Wish you'd have been about then! I finally understand it. Brilliant!

@AccountingStuff Год назад

Great to hear it's clicking for you

@spamaccount5059 3 года назад

This video is the best explanation of equity EVER!!! Very well done! Thank you!

@AccountingStuff 3 года назад

Cheers!

@acassiadavidson7428 Год назад

your entire channel has saved me, if I ever become something in the world of finance, so much of it will be owed to you fr

@caffeineenroute 3 года назад

Man, you break the subject down so well and have such effective slides. Thank you! :)

@AccountingStuff 3 года назад

Cheers!

@tealels3789 3 года назад

This was awesome! Came here to get a better understanding of equity as we just went from sole proprietor to partnership. What I got out of it was a way better general understanding on all the elements! Thanks again!

@AccountingStuff 3 года назад

No worries, glad it's making sense :)

@airadelfino4541 3 года назад

Watched 4 of your videos already and so far I can say, "You are amazing!!!" Thank you for this video

@AccountingStuff 3 года назад

Cheers Aira! I'm happy you're finding them helpful :)

@alodiatanojo6415 4 года назад

I'm doing a career change and I forgot all my accounting stuff!! Your videos are one of the easiest to follow honestly. Keep posting!!

@AccountingStuff 4 года назад

Thanks Alodia, I'm working on a bunch more at the moment

@iGabrielPedroza Год назад

You did such a great job simplifying these terms and because of that, you helped me a lot! Thank you, James!

@sherreerobichaud4750 4 года назад

You are truly a gifted teacher and storyteller. Thanks James for sharing your expertise.

@AccountingStuff 4 года назад

No worries Sherree!

@thiagog409 10 месяцев назад

You are the best. Thanks for sharing your gift of explaining difficulty stuff in a simpler and understandable way with us. Much appreciated.

@tarcilasam 2 года назад

The best explanation of equity I`ve seen here on youtube, thank you! I`m applying for a support analyst position in a fintech and I`ve been learning about equity and other terminologies related to the business this week, I´ll watch all your videos related to this topic now, you saved me! XD

@infoninjaz5336 3 года назад

You are a genius man! I had been reading and re-reading 25 pages of my basic accounting chapter! Damn, you made it so clear in 1 video! Thank you tons!

@AccountingStuff 3 года назад

No worries, glad to hear it's making sense!

@chestnut8741 4 года назад

Im legit just learning about stocks and fundamentals and knows nothing about accounting but i acctually understood it, youre the best teacher man

@AccountingStuff 4 года назад

Cheers, I'm happy to help :)

@vinaysharma_1604 11 месяцев назад

A very supreme coverage of the concept. Thanks for existing.

@4w7thncwt48oi 3 года назад

Not only are you an amazing teacher but the production quality of your videos is incredible, thank you so much for making this content. I'm paying £9,000 for uni but I'm watching your videos instead of my pre recorded lectures because they're so much better.

@AccountingStuff 3 года назад

Cheers Caleb!!

@mwpackard1 5 лет назад

This channel is great! I am currently taking accounting at uni and have a test in 2 hours... I'm excited to see your channel progress at the same time as my class!

@AccountingStuff 5 лет назад

Thanks Taylar, and good luck for your test!!

@rebeccaw5516 9 месяцев назад

Thank you so much for the one by one explanation. The equity is the hardest part of my job. Thanks again for your help!!!!

@AccountingStuff 9 месяцев назад

No problem!

@AymanKhalifa 11 месяцев назад

Thanks a lot James for the simple easy illustration which you did a great effort in it . 🙏

@SandraRaquel19 2 года назад

Omg a BIG thank you for your videos!! They are helping me so much!!

@gregoryincollingo3889 3 года назад

Thanks for the video. Your 11 min video just cleared up a concept I struggled with for a long time. THanks!

@AccountingStuff 3 года назад

No worries Gregory! Glad it's making sense

@mohammedsahilsa2149 3 года назад

I was struggling with accountancy in my university. Today I came through this channel. U explained me better than my qualified professor. Thanks james. You are doing an excellent work. Keep it up 👍

@AccountingStuff 3 года назад

Thanks Mohammed, I'm sorry to hear that you're having a tough time at uni. Best of luck with it all!

@emreoral4385 4 года назад

Thank you again mate. You are an awosome human being just for apploading these videos:). And you are probably the first RU-vidr that genarious enough to reply ALL THE COMMENTS.

@AccountingStuff 4 года назад

Cheers Emre! Haha, it's no problem. I love to chat with my subscribers!

@jamesdot87 4 года назад

Mind blown on how simply this was explained and easy to understand compared to the last 50 hr long videos that left me even MORE confused 😊😂....thanks brother

@AccountingStuff 4 года назад

No problem, glad to hear that the video helped!

@david.ricardo 4 года назад

I just discover your channel and I have been watching the accounting playlist basics, it’s amazing!!! I’m sure you will get millions of view as more and more people search accounting stuff on RU-vid

@AccountingStuff 4 года назад

Cheers David, great to hear that you're enjoying the vids

@TravelyourwaywithKim 2 года назад

Thank you. You make understanding accounting so easy!!

@Mothersbeauty 5 лет назад

I'm so glad that I found this page. You have really thorough information. Thank you.

@AccountingStuff 5 лет назад

No worries, hope the videos are helping you out!

@verenaschweizer8148 3 года назад

just in my first year of finaces and this channel is absolutely life saving!!! Thanks for your amazing videos

@AccountingStuff 3 года назад

No problem, all the best with your studies!

@thingssshappennn 8 месяцев назад

You are the best, when it comes to proper explanations!!!

@AccountingStuff 8 месяцев назад

Thanks! Glad you found it useful :)

@jacobwhalley7026 4 года назад

So well communicated mate I'm starting aat l2 in September, honestly, I started on the journey for money but your videos are genuinely interesting and I'm now looking forward to this fair play dude!

@AccountingStuff 4 года назад

Good luck in your course!

@vinasanjoyo 4 года назад

I can't thank you enough for this video, all this time I thought drawings and dividends are different things, and I actually didn't really understand what a dividend is, but thanks to you, I get it now!

@AccountingStuff 4 года назад

Nice one Vina, glad to hear that it's clicking!

@loadingalready Год назад

You always save me before any interviews thanks so much ❤️

@Josh-ff1zm 3 года назад

WGU please take notes!!!! This guy's youtube channel is better than your entire Financial Accounting curriculum.

@liyanginirmani9850 4 года назад

I'm an IT graduate and now I'm reading for MBA. Accounting was a very difficult subject for me earlier. But after watching your videos I'm enjoying accounting. Thanks a lot

@AccountingStuff 4 года назад

That's great to hear! Best of luck with your MBA

@shefalibisht00 Год назад

Loved how you explained EQUITY in such an articulate way!

@mementomori1723 3 года назад

What a brilliant teacher! Thanks for bringing light to this topic.

@AccountingStuff 3 года назад

Thanks Lousie, hope it helps!

@yichingwang2147 2 года назад

Why I didn't find your channel back in uni years when I was so struggling with Accounting????? Why I paid buttloads of money to a university that couldn't explain EQUITY clearly in 10 mins and instead, took me almost 3 years??????? lol All I want to say is THANK YOU JAMES!!! Your explanation is the clearest I have ever seen in my life!!

@AccountingStuff 2 года назад

Thanks, I'm glad to hear that you found it useful! All the best :)

@MatthewGlover 7 месяцев назад

Studying for a test and this channel breaks these accounting terms THE BEST. Thank you so much!

@AccountingStuff 7 месяцев назад

Good luck in your test!

@misspetitedolly 2 месяца назад

I cannot express how helpful this was, thank you!

@AccountingStuff 2 месяца назад

You're very welcome :)

@resegomorake9292 2 года назад

Your videos are the best! 110%! You've helped me understand accounting in a short period of time something that I've struggled with for years. Thank you.

@AccountingStuff 2 года назад

No problem, I'm happy to help :)

@eileenz.7960 2 года назад

I like the content itself and the way you edit your video. Super helpful! Thank you so much for putting effort into this.

@AccountingStuff 2 года назад

Thanks Eileen, glad you enjoyed it :)

@LeslieDo 10 месяцев назад

I appreciate the time and effort you put into the video, the content is amazing, simple and concise. I've been reading those textbooks and still couldn't get my mind straight with all the terms, thank you again!

@AccountingStuff 9 месяцев назад

No worries!