Jesus, This explanation is incredibly insightful and truly resonates with my three years of study in the finance industry. Thank you for simplifying such complex concepts with clarity and depth. Your expertise is invaluable and greatly appreciated! Please maybe next time Can you explain why Net Income is much easier get 'manipulated' that cashflow ?
Thanks for watching and sharing your feedback! I would think that the answer to your question lies around accrual accounting, which only recognizes income and expenses when the underlying activities take place (IE recognizing income whenever u deliver ur product or service, and recognizing expenses when the benefit is consumed). Because those activities can’t be pointed to in a bank statement (like cash flow) a company can lie and say they incurred $1m in expenses. But for cash, companies perform bank reconciliations as part of the month end close process, proving their cash balance from their bank statement. Hope that helps!
I just started my first year as a Finance major last week, and for some reason I'm struggling to wrap my head around which financial actions fall under which label (non-current vs current, financial vs operational, etc) and how they relate to each other when determining missing values in a financial statement. I'm definitely coming back to this video.
Very cool, hope you also find these infographics useful! www.yourcfoguy.com/templates/financial-statements-mindmap www.yourcfoguy.com/templates/how-the-balance-sheet-connects-to-the-p-l www.yourcfoguy.com/templates/cash-flows-connects-to-p-l-balance-sheet
Best explanation on UA-cam so far. Now I can play around with the numbers on the excel file and see how the numbers on each statement respond to that input. THANKYOU bro
I would say yes! The general question is "if this cost went away, can I still carry out my product / service?" If the answer is no, it most likely is a COGS!
Jesus, This explanation is incredibly insightful and truly resonates with my three years of study in the finance industry. Thank you for simplifying such complex concepts with clarity and depth. Your expertise is invaluable and greatly appreciated!
Please maybe next time Can you explain why Net Income is much easier get 'manipulated' that cashflow ?
Thanks for watching and sharing your feedback!
I would think that the answer to your question lies around accrual accounting, which only recognizes income and expenses when the underlying activities take place (IE recognizing income whenever u deliver ur product or service, and recognizing expenses when the benefit is consumed).
Because those activities can’t be pointed to in a bank statement (like cash flow) a company can lie and say they incurred $1m in expenses. But for cash, companies perform bank reconciliations as part of the month end close process, proving their cash balance from their bank statement.
Hope that helps!
I just started my first year as a Finance major last week, and for some reason I'm struggling to wrap my head around which financial actions fall under which label (non-current vs current, financial vs operational, etc) and how they relate to each other when determining missing values in a financial statement. I'm definitely coming back to this video.
Very cool, hope you also find these infographics useful!
www.yourcfoguy.com/templates/financial-statements-mindmap
www.yourcfoguy.com/templates/how-the-balance-sheet-connects-to-the-p-l
www.yourcfoguy.com/templates/cash-flows-connects-to-p-l-balance-sheet
Best explanation on UA-cam so far. Now I can play around with the numbers on the excel file and see how the numbers on each statement respond to that input. THANKYOU bro
Mission accomplished!
Great video Josh!
Appreciate that feedback coming from the legend himself!
Absolutely brilliant!
Thanks for watching!
Finally❤
Excited to release this!
Awesome video
Thanks for watching!
Awesome videdo
Nice to see you here Alwin - thanks for watching!
great :)
Thanks for watching!
For a kindergarten business, are teachers considered COGs given that we needed the teachers to generate value
I would say yes! The general question is "if this cost went away, can I still carry out my product / service?" If the answer is no, it most likely is a COGS!
Super good till the end. The end was a bit too rushed
Appreciate this feedback! Can you confirm what time at the end you felt it got too rushed?
@@yourcfoguy starting at 8:55
@@ascent5965 thanks for the feedback! Will keep that in mind next time