Perhaps one of the most difficult concepts to understand in beginning accounting is the relationship between assets, liabilities, income and expenses. I discovered the most lucid explanation of this relationship in Robert T. Kiyosaki's book Cash Flow Quadrant. Let's define these terms in a way that is easier to grasp. Kiyosaki defines an asset as something that puts money into your pocket. That is, assets generate income. Conversely, liabilities take money out of your pocket. Expenses not paid with cash generate liabilities. For example, the mortgage on your home is a liability; so is the outstanding balance on your credit cards.
In the double-entry accounting system customarily used by business and taught in accounting classes, the assets and income must counter-balance each other. In a solvent business, assets acquired are recorded as a debit amount; income is entered as a credit amount. To counterbalance the asset and liability entries, we enter income as a credit amount and...
As I have found more and more students interested in CPA preparation, I have also found concurrently that the standardized CPA preparation materials and programs to be lacking and materially deficient in motivating and instructing candidates to successfully navigate and pass the 4 stages of the CPA Exam. I have begun the blog and will maintain posts and responses as subsequent posts are made to assist exclusively in the subject of CPA exam preparation, whether that be in any of the 4 areas of the exam, in the education necessary to become a candidate as well as in test taking habits on a generalized basis. I welcome questions, concerns and stress relief posts and will respond accordingly and timely to those posts.
That being said... Let's discuss an important and often overlooked topic, a topic covered and often covered in some detail on the AUD exam. The topic is the subject of REVIEW ENGAGEMENTS.
Review engagements are intended to provide limited assurance that the financial...
Cash flow is ultimately what drives us in our personal lives or in business. We look at the Cash In's and the Cash Out's. If we have more cash coming in than cash going out, we call that Cash Flow Positive. If cash out is more, we call that Cash Flow Negative. We can be negative from time to time, but not for too long or if we don't balance it out with periods of positive.
Over that past 20 years, we, as a society, have spent MORE than what we took in (what we earned). How did we handle it? How did we make it work for so long? Credit cards and home equity loans. When the economy was going well (remember that?), credit card companies and bank mortgage companies 'gave away' credit card and mortgages and home equity loans (HEL). We borrowed the money, and that allowed us to overspend. We were cash flow negative. Well, it catches up to you eventually and the US President and Congress are wrestling with this exact same issue today. Times have changed (for the worse) and we have been...
Is there anyone who is not busy today? I don't know of anyone who fits that category. So the question begging to be answered is, "How can I most efficiently allocate my time to best meet my needs, the needs of my family, while also maintaining a social life and staying in good physical health?"
In my current profession, tutor, blogging is an option we can use to, in an indirect way, generate income. Plus, since my field is English, which includes writing and all sorts of literatures, writing a blog seems an appropriate activity to pursue. Not only will it eventually benefit me economically, it will give potential students some insight into who I am and also provide concrete proof of my alleged abilities in English.
So far, this brief entry has taken me approximately five minutes to write. And I'm pretty sure this will be my last paragraph. So, even if I take another five minutes, the total transaction will equal out to 1/6 of an hour. The rate I'm currently charging...
I've never actually tutored folks outside of my family, but this would certainly be something good to have under my belt and in my resume. I don't have a bucket list or anything made up, but if I did, that would certainly be crossed off my list. Since this doesn't really relate to any particular topic listed in the "related subjects" scroll, it relates to tutoring in general, I just put the first thing on the list. Since this won't let me "add subject" I just have to leave it as is.
First discern what a financial transaction is and what is not. Often, the text will include an interaction that is not a financial transaction and will not require a journal entry. Perform journal entries. Journal entries will affect two accounts (one debit; one credit) in the same dollar amount. Journal entries serve to make it easier to accurately produce T-Accounts. The basic equation in accounting is: Assets = Liabilities + Stockerholders' Equity. Debits are always on the left, and credits on the right. Assets are debit accounts, meaning whenever an asset (i.e. cash, equipment, receivables, supplies, etc.) is added the number is debited (increased) on the left. Liabilities are credit accounts, meaning whenever a liability (i.e. payable, unearned revenues, etc.) is added the amount is credited (increased) on the right. Stockholders' Equity accounts include common stock (credit), retained earnings (credit), dividends (debit), revenues (credit), and expenses (debit). The trail...
What The Student Needs to Know
Due to competition for engineering jobs after college, employers expect a high academic performance from students vying for engineering positons in the industry. This practice will address the demands of rapid technological change based on challenging needs. Therefore students must take advantage of opportunities that currently exist in the tutoring of Algebra, Calculus and Physics. This will prepare them for challenges in engineering and science carrers in the years ahead, in the shortest possible time.
The leap forward for the student strictly depends on academic determination and preparedness and he or she must know how best to pursue learning objectives in these fields. They need to overcome said `hurdles' of Calculus and Physics that are gateway to applied science programs - engineeing, medicine...
Eulers number, named after the Swiss mathematician Leonhard Euler, shows up in a lot of diverse applications. It is an irrational transcendental number, meaning it is never a solution to a polynomial equation with rational coefficients. It is also called the Natural Number, and is represented by the letter e. It is approximately equal to 2.718281828..., correct to 9 decimal places. Although it seems like the sequence of numbers 1828 will repeat forever, it does not. e is actually the limit as x approaches infinity of (1 + 1/x)^x. Most famously, e occurs in finance. If you were to invest 1 dollar in an account that pays 100% interest every second (yeah like such an account exists), after one year the amount of money in your account would be, guess what: $2.72 rounded to the nearest cent. Is this useless information cool or what?
When many people who learn accounting for the first time learn about Debits and Credits, they think that debts have to do with debtors and credits have to do with creditors, and try to think through their accounting entries. In fact, Google "debit and credit in accounting" and you will not find a simple way of understanding what how to debit and credit accounts properly.
While I will expand on this over time, a good teacher should impress upon a student that there is no point in thinking about debits and credits in terms of debt and credit. One proper way this topic should be taught early to enforce good habits is as follows:
1) Begin with the T-account structure and explain that Debit means Left and credit means Right.
2) Provide a balance sheet with the asset accounts on the left and the liability/equity accounts on the right.
3) Explain that if an account is on the left (asset or contra-liability or contra-equity), a debit entry (left) increases...
Yesterday was a great day to be a tutor. Two of my students who were struggling in Math (one more than the other), have proved to me that with hard work and determination you can achieve. One of the students, his mom called me to say that he scored an A on his test. That was such great news as his grades were usually 60 - 70 on his quizzes and tests.
I tutored both of them yesterday. I gave them a revision test just to see how much they have progressed and where they may still need more practice. I was amazed at how much better they were in comparison to six weeks ago, when I first met them. The other student, most times he would just look at the paper without knowing what to do. This time he completed the test. He still needs some more practice with fractions and probabilities, but he is doing much better now. So proud of both of them.
Hopefully, we will be able to get through this quickly so we can start working on Geometry.
I have over 10 years of experience in providing tutoring services to various aged adults and teens. I began when I was in high school teaching the elementary special education students how to learn through coping with their disabilities. After proving success doing such, my peers began to turn to me asking me to tutor them in classes I had before them or even in classes we would take together. By the time I reached college, this was my career as I thrive on seeing others who may struggle turn out to be successful. It was at this stage that I was first noted as being in the top 3 percent of the nation among my high school class in academics, community involvement and later due to leadership. During my early college years I continued to teach peers as I later excelled to be able to teach the underclassmen while I was in my later years. Once I reached graduate school I taught all levels of undergraduate studies in the courses that I have excelled. Now I continue tutoring but do it with...
Many students claim to be just bad test takers. No matter how much they study or how well they understand the information, when it comes to taking the test, they can’t perform. Well, rest-assure that the problem probably isn’t that the student is a “bad” test taker, but that they let stress get the better of them. In 9 out of 10 students, inability to perform on tests is caused by stress and tension. Luckily, there are some test taking tips that will help any student conquer test apprehension.
All students should have a few of these secret ways to improve not only their test-taking abilities, but also their confidence and self-assurance on the day of the test. The following tips can make a big difference right before a test. Students should try them all to see which ones work best for them.
Special Advice to Students:
1. Use multi-sensory studying and memorization practices. When we study, we tend to focus on the visual, but actually, other senses...
Well, isn't this nice? Just as I am getting to know my new city, many of it's nicest people are choosing to try me as their tutor. What a great service WyzAnt supplies! I am full of potential new clients, and I am free to teach in the Learner-Centered, Discovery Model teaching style that I favor. Of course, I can always "teach to the test" if you have an exam you want to get past, but I will try to give you something more than a grade on a test.
My hope is to leave you with another brick in your Math foundation. Strangely enough, I have been teaching just long enough to see that these bricks tend to grow like seeds. When you learn on your own, in your style, at your pace, in your language, on your schedule....it sticks.
It sticks and it grows. Your Math foundation grows. Your comfort with Math grows. Your curiosity grows, too. Small Math chores that used to make you mad are now tolerable, or, could it be? Fun.
In December 2010, New York Attorney General (AG) Andrew Cuomo recently brought civil charges against Lehman Brothers’ external auditors Ernst & Young (E&Y) for complicity in fraudulently misleading investors. The AG alleges that Lehman’s then-auditor E&Y assisted Lehman in perpetrating financial fraud. In particular, Cuomo has charged the accounting giant with three counts of securities fraud under the Martin Act and a charge of persistent fraud and illegality brought under the Executive Law § 63(12) of New York. The AG claims that E&Y by signing off on the controversial Repo 105 transactions worth $US 50 billion on Lehman’s balance sheets just before it went bankrupt, aided the bank to mislead investors.
Repo 105 (Repo is short for repurchase agreements) involved what amounted to a short-term loan, exchanging collateral for cash up front, and then unwinding the trade as soon as overnight. It involved selling securities for 105% of their value to counterparties...
Imagine if you were trying to learn a new language, and you were taught the idioms of the language right away, without first being thoroughly taught the grammar of that language. Chances are that when taught a language in this way, you may be able to construct a few sentences but you will not feel comfortable conversing in that language. Unfortunately, this is often how accounting is taught to students who are not in a full-fledged accounting program.
I have met a number of students who have consistently done well at school and college, and even have no trouble with numbers, but find themselves frustrated with accounting. I believe that the reason behind this reaction to accounting is the way it’s taught. Accounting is usually taught by illustrating examples of conventions for different type of business events. In most cases only a perfunctory overview is provided for what l like to call “the accounting logic”. Once a student has grasped the accounting logic, the rest of the journey...
For many students, the title of their course alone can strike fear within them.
Accounting 101, Finance 350....how did I get into this? More importantly, how do I get out?
First, realize that the challenge you face in an accounting or finance course is not the end of the world. The fact that you are in college/graduate school speaks volumes about your past accomplishments and what lies ahead. You can survive this course and prosper with it.
Second, understand that you are not alone and others have felt what you are going through. Even for many of us who continued on with additional coursework in accounting and finance, those first courses (and maybe even ones later on) brought a certain amount of discomfort and questioning … why does this not make sense instantly, like other material did?
Third, please realize this material is like learning a foreign language or learning music. Accounting and finance have their own terminology, ways of doing things, concepts,...
If you are having problems in your first year of accounting, please contact me.
I have helped students master the subjects listed below over 20+ years.
Right now, I am teaching at two schools --
Accounting for MBA students at Pocono Medical Center
Financial Accounting for undergraduate students
Managerial Accounting for undergraduate students
Pennsylvania School of Business:
Accounting I, II, & III.
In the past, I have taught these subjects at both a California and an Oregon Community College (only stopped because I moved to PA).
*** WORKING WITH STUDENTS UNTIL THE LIGHT BULB TURNS ON ***
A teacher's job is to work with a student until the material is presented in a way that the student "gets it!"
Hi everyone, my name is Liyan. I have many years of Accounting, Math, Economics and Chinese language teaching experience. I have a Bachelor of Arts in Chinese Linguistics from Shanghai University in China and a Bachelors of Accountancy from Walsh College in Troy, Michigan. I am able to teach you Mathematics (up to Calculus), Accounting (Financial, Managerial, Government and not-for-profit, Business combination), Chinese conversation and writing in both Mandarin and Shanghai Dialect. Please contact me if you need help in any above areas.
Practical Business/Computer/Accounting and Public Speaking tutor with some unconventional methods of test preparation and test taking that work very well in conjunction with normal class work and study.
I look forward to being able to assist you with your class and very much enjoy seeing a student progress. (Additional Hours may be available by appointment... such as latter nights due to your work schedule).