Can you pass this Accounting test?
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- Опубліковано 26 чер 2024
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Chapters:
00:00 Intro
00:36 Assignment #1 Revenue recognition
03:48 Assignment #2 Expense recognition
07:26 Assignment #3 Other Income
In this video I cover 3 Accounting interview assignments:
1. Income recognition
2. Expense recognition
3. Other income question
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This is actually a pretty fun learning excersize.
The best accounting teacher ever
For question 3, in our local GAAP and under audit, it wouldn't be accepted to compensate expenses from the sales of tickets, as it would be against full disclosure and non-compensation principles + normally the sales of these tickets, even if categorised as other income, would be subject to VAT (= more or less like Sales Tax in the US), so need proper invoice (or any form of receipt) and proper revenue (= tax base) booked.
I got the first two right away, second one was completely wrong. I’m finishing my accounting bachelors in the next 6 months so it’s nice to learn as much as possible. Please keep these videos up been watching you for a couple years now.
That's great!
Good revision for ACCA Financial Accounting. Got that exam in 3 weeks, and I'm hoping to nail it!
These videos are excellent for all interested in accounting!
Happy to hear that!
Hi Bill, thank you for your time to share your accounting knowledge with us. It’s really good your videos.
Congrats!
My pleasure!
This was a nice refresher!
Good practicing!👍
Loved this! Keep them coming
We will!
Thsnks for the fun & learn excercise!! just came different entry in Assignment #1 please correct if wrong
Assignment# 1
Dr Accounts Receivable 1400000
Cr Revenue 200000
Cr Unearned Revenue 1200000
Dr Unearned Revenue 100000
Cr Revenue 100000
In the real world, the platform fee might initially post to revenue and then you have to prepare a JE to defer part of it. It depends on how items are set up in the A/R system. A best practice might be be to set up platform fees to map to deferred revenue, but this isn't always the case and it sort of depends on how the company negotiates contracts.
Hi Bill, your videos are very nice, can you please make video on Accrued liability reconciliation, how to analyze it, what is the implication if reversal not done with sense of SOX as well.
this is pretty fun. Can you make the Percentage of Completion. thank you
Great video! Thank you. You really give a lot of valuable information. I have a question. I am looking for an entree level accounting job. And mostly in my area it is a billing clerk position.
Will that experience count towards CPA license in Minnesota? Thank you!
Hi Bill,
Your videos are really informative man.
I m from India, having 4 years of experience in an Indian Firm as accounting and auditing executive.
Which one would be better for for further career learning, MBA with Major as Accounts or Maac with concentration as Forensic accounting.
Revenue we can only record revenue when the performance obligation is satisfied either over the period of time in case of service sector we cannot record whole year Revenue we can only take the Revenue either based on time, or amount of performance that has been satisfied
Thanks for the great video ! Huge help ! could you make a video on landing an accounting internships? :)
Sure thing!
I would have reduced an expense if there was a related expense or as you stated credit other revenue.
Why not tab through cells or use arrows to navigate your cell entries?
Hi! Which accounting software is use in Germany or in europe we use quick book and excel sheet
Hi, new subscriber here!
I have a question I am now in (AP) looking to get certified, but my next question is after I do that I wanna continue to pursue accounting just not sure where to start. Any suggestions, please?
Could the expense also be recognized up front in exercise 2? Since there’s no way to quantify the revenue/benefit generated from the future event (relating to the matching principle)? Will deferring the expense recognition still conform to GAAP in this case? If the event’s purpose is to generate leads and interest, that doesn’t necessarily equate to revenue within the same month? Anyways thanks for the exercises! My fav accounting channel by far!
all good questions, but in at the end of the day, Accounting is about fair presentation of financial information, so your questions are good so you can discuss it with your Accounting team and find the best path.
I struggle to find hats that fit me. I'm a small so most hats are way too big. I just ordered a Boston Scally on Amazon since they offer free returns. If it fits good I'll try othet styles directly from Boston Scally. Fingers crossed.
I would lower the music a bit. My .02
In first scenario how AR and deferred revenue is coming together ?
Hi, I have confidence issue regarding accounting. I have been looking for a job entry level for almost 2 months. I have BBA (all electives accounting and passed with all As) , masters in management science and started my CPA but still having issue finding a job because I only have 2 years AP experience in a grocery store (not full cycle). I don t know I am not sure how much knoweldge I should have or what kind of skills I should have to be able to secure an entry level job? applied over 50 places (2 interviews still waiting) also, what kind of wage should I expect. I am pretty sure a lot of people in my position, don't know what to expect or what we are offering to the employer in our heads. I watched your videos about entry level positions and wage expectations but seems like they are not entry level (sarcasm) positions since they ask for 3-5 years experience and put it as entry level position. I am lost and losing my hope. My dream is to be an accountant, a good one but no1 gives chances. ( another reason is ppl lie aloot in canada about their resumes)
a few tips: 1) try to apply to a public accounting firm, work in audit if possible. They always need people. 2) Nothing wrong with slightly making your current role seem bigger in your resume by using fancier words. Look up AP accountant resume example and copy wording from it. 3) It's a numbers game, you need to apply to so many places to secure 1-2 interviews, you are already doing it. 4) Continue and don't give up. If you want it, you will be it, that's what I've seen so far
@@TheFinancialController thank you. You are amazing not skipping a single comment, caring about all your viewers. Thats amazing. Thanks.
Sample 1 still has DR Cash and CR AR entry right? just feeling OC about it hehe
Good one
Loved this ❤️... Please continue making such videos !!
Thank you! Will do!
Why would scenario 2 be listed under AP if the company paid the prepaid cost in July, shouldn’t it be a credit for cash ?
Yeah he got that one wrong….
Hey Dear, any thought on hiring a video editor?
Love to see more of these video’s !
You got it!
In scenario 1 if you were paid the 1.2m (1:33) shouldn't the debit be to cash not AR?
In scenario 2 I would have booked the expense in 2023, there is no guarantee that leads will create revenue, even if they do there is no way to estimate when or how much revenue will be earned.
Either way great video, keep'em coming!!
Thanks JD, in assignment 1, we didn't get the cash, we simply invoiced the customer. In #2, I see your point, but it's matching the cost with the benefit is underlying idea.
I assumed you got cash b/c you said "paid"
@@TheFinancialController
In scenario 1, even if the cash was received on invoicing, the two transactions should be posted separately for completeness.
Thank you for your amazing channel Sir. The question at 6:45 seems wrong. Since you pay expenses in advance why you credited to AP
In assigment #3, why would you record the 20K as other income and cost the comapny extra tax rather than record them as an expense reduction? Send them back to the marketing annual budget and they will cost you nothing.
I need more of these questions!!!
Hello my sir.. I have a question to ask.. I tried asking this to many but I'm not getting authenticity. If an employee salary is $10000 every month and he worked for 28 days in august 2023. If i consider one month as 30 days, how would be the calculation for the month of Aug23 (every sunday is holiday). No other adjustments.. Pls help
10000/30*28=9333.33
@@rashadbabakir8955 thanks for your time.. But my humble doubt is when we devide it by 30, the average salary per day increases and he becomes absent for 3 days in the month of Aug. in nut shell work days should be 27 or 28 days?
Your mothod the days of all months is 30 days actually he work 28 days
FEB 2023 is 28 days also he will get 10000 even he work 28 days
Why so eeaassaayy braaaaooo!!!!
I want to be make accountant iam not management student
Sir, I have a question, are you even earning enough money being a topnotch accountant?? Being doubtful as you are quite active in UA-cam...
Haha yes I do well. UA-cam is a side hobby
@@TheFinancialController 💕
The topic is for ifrs15 revenue from contract love from Pakistan ❤❤😊
Very Simple & understandable 👌
Right on time for my exam tonight. Thanks for the additional study material.
Best of luck!
Thanks a million for making this amazing video (I was confused with the 2nd scenario and now no more...
Thanks for the video and congrats on the recent promotion to director!
Thank you!
Interesting practice test, but the real world answer for #1 (revenue recognition) is more complicated. You need to take into consideration issues such as the nature of the services delivered, whether it's part of a larger project that hasn't been completed, and whether the client was required to used Squid to perform the services or had the ability to use a third-party. The answer could be anywhere from $0 - $200,000. Most likely $0, $16,667 (1/12 of the service value), or the full $200,000 as shown in the video.
Love these videos. Please make more, sir. Thank you for sharing your knowledge!
pls, keep a positive image on your video's thumbnail.
I will try my best
Wow, love it! Thanks for sharing! #mentor
Glad you enjoyed it!
Keep posting like these please
Hi Hanna, in opption B for Assigment 3, I find that the reccognition of the tickets impact the Marketing expences, but what if there´s no marketing expenses in jan-2024?
Thanks a lot in advanced
There has to be a marketing expense in Jan 2024 since the event is happening then. Otherwise it should go to other income
@@TheFinancialController Good, and thxs for your great content.
Would it be wrong if I wrote the first answer like this?
Debit AR 1.4 million
Credit Revenue 300k
Credit Deferred Rev 1.1 million
Also, I learned the account as unearned revenue, is this a common synonym or should I just start calling it deferred revenue?
By the way, I am watching this video as procrastination for my IT assignment in school lol, I guess accounting is more interesting!
Your JE is correct too (it's a consolidated version). And yes, you can call it either unearned or deferred revenue
@@TheFinancialController thanks! Keep up the good videos!
Im currently studying accounting essentials at university and this was so easy to follow! 😄
You got this!
Is deferred revenue the same as unearned revenue? Or are they different
There is no difference between unearned revenue and deferred revenue because they both refer to advance payments a business receives for its products or services it's yet to deliver or perform.
@@TheFinancialController got it, thank you so much for a clear and quick response!!
Hi. I need to learn GAAP plz
Nailed it! Can you hire me for your company now 😊
❤
👍🏼✅
On #2, expense recognition, we handle expenses for events (material amounts) around when these take place. The reason is because these are usually recurring and want to create comparable P&L reports from year-to-year, regardless of when vendor invoices / payments or credit card expenses are processed (also facilitating the budgeting process)