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# 5 minute balance sheet 01

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• Suggested name: the five-minute balance sheet. Suggested name for the second chapter: the four-minute balance sheet. &quot;Making your own computers&quot;.
• And your
• At the end of the slide there could be snippets of comments. You can get just about anything if you plan right. Let’s show you.
• Information integrity: the correct definition of a balance sheet. Assets are equal to liabilities plus your own capital. To be explained subsequently.
• ### 5 minute balance sheet 01

1. 1. “Getting started with financial accounting” (In less then 5 Minutes!) To play these exciting playstation games we need a play station 1st !
2. 2. Play Stations cost money That’s how much we need \$ 150 Let’s see how much we have
3. 3. Can we buy this from our pocket money?
4. 4. Nothing left from my pocket money.
5. 5. Wait! The piggy bank has some money!! 60 Bucks. Not Bad!
6. 6. Need to ask dad (better still Mom) for a loan 50 Bucks. That’s what Dad can spare.
7. 7. Still not Enough ! 60 Bucks from the Piggy Bank & 50 Bucks from dad That’s a cool 110 bucks!. 60 Bucks 50 Bucks + = 110
8. 8. ?Now What ? Where do we get that? 40 Bucks Short
9. 9. Tommy ! His Piggy Bank’s Bursting
10. 10. If Tommy can put in 40 bucks He can Share the Playstation
11. 11. Tommy’s IN ! My New partner.. I need 40 Bucks But Tommy wants to be an equal partner I put in 60 Bucks And here’s his 60 bucks!
12. 12. More than enough money to buy the Playstation + = + 170 Piggy Bank 60 From Dad 50 From Tommy 60 Let’s do some quick math
13. 13. The Playstation only costs 150 Money Left Over \$20
14. 14. Let’s talk money language That’s the name for Where the money came from (also known as SOURCE) Liability
15. 15. Like any language money language also has a vocabulary Money that you put in is Owner’s Capital * When you have a Partner (like Tommy) that’s Shareholders Capital * Loan from Mom or Dad known as Loans
16. 16. Let’s go get that Playstation and hook it up Where the Money went
17. 17. Lets play with the games that came with the Playstation Image of 2 kids buying a playstation
18. 18. Time For some more Money Language ASSETS OR Where the Money went (also known as Application of Funds)
19. 19. Money that’s Left over is also an Asset (Known as Cash Balance)
20. 20. A statement Balancing Where the money came from with Where the Money went Is called a Balance Sheet Back to the Money Language
21. 21. Our very 1st Balance Sheet Liabilities (Where the Money came from) * Shareholders Capital ME \$60 Tommy \$60 * Loans Dad \$50 Total \$170 Assets (Where the Money went) Playstation \$150 * Cash Balance \$20 (Money Left Over) Total \$170