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Resources for Accountants

Net Income vs Operating Cash Flow [Video]

Net income and operating cash flow are not the same thing, and they can be very different.A company might report net income yet negative operating cash flow, or conversely report a net loss and yet positive operating cash flow.That’s because net income is a company’s profit calculated using accrual accounting, not cash-basis accounting. This means net income increases with credit sales, where cash hasn’t yet been collected, and it decreases with non-cash expenses, like depreciation and amortization.Operating cash flow, on the other hand, is the actual cash a company is generating from its core business operations. It increases when cash is collected from customers and decreases when expenses are paid, and it’s not affected by non-cash charges#shorts — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING• A 44-PAGE GUIDE TO U.S. TAXATION• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS• MANY MORE FREE PDF GUIDES AND SPREADSHEETS* http://eepurl.com/dIaa5z— SUPPORT EDSPIRA ON PATREON*https://www.patreon.com/prof_mclaughlin— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/* https://michaelmclaughlin.com

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Resources for Accountants

FAANG stocks: Easy explanation [Video]

In this video, you will learn everything you need to know about FAANG stocks.#faang #tech #wallstreetmojo #stocks #stockmarketChapters:00:00 – Introduction00:28 – What are FAANG stocks?01:06 – How do FAANG stocks affect indices?01:50 – Are FAANG stocks risky?02:56 – ConclusionWhat are FAANG stocks?Facebook, Apple, Amazon, Netflix, and Google, that’s what FAANG stands for. This is a group of the five most successful and popular companies in the world.It was Jim Cramer that used the term back in 2013 to refer to these mammoths of companies that literally dominated their business and became influential stocks in the stock market.(Explained in detail in the video)How do FAANG stocks affect indices?The FAANG stocks combined have a market capitalization of more than $5 trillion, with Apple having the highest, followed by Google and then Amazon.These stocks make up around 15% of the S&P500 index and 30% of the NASDAQ index.From the numbers above, you can see that these stocks are huge and take up a lot of space in indexes, so if the price of these stocks moves, it will cause the price of the index to move too.(Explained in detail in the video)Are FAANG stocks risky?The FAANG stocks have been lucrative for investors for a long time now, but you know what? The pandemic affected these stocks a lot. In fact, it was the entire tech industry that was hit hard.So yes, these stocks are risky to invest in. That’s why you need to be careful with them.All of these stocks are in the tech sector. If your portfolio consists of these stocks only, then your portfolio is exposed to many risks due to it not being diversified.This will be all for this video. Subscribe to the channel, give the video a like, and share it with others.==========================================================================Subscribe to Our Channel –Youtube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1LinkedIn https://www.linkedin.com/company/wallstreetmojo/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/Twitter https://twitter.com/wallstreetmojo

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Resources for Accountants

Qualifying for S Corporation Status [Video]

A corporation can elect to be treated as an S corporation by filing Form 2553 with the IRS. But not all corporations meet the requirements to make an S corp election.To be treated as an S corporation, the corporation must:(1) be a domestic corporation (2) not be an ineligible corporation(3) have only one class of stock(4) have no more than 100 shareholders(5) not have any shareholders that are C corporations, partnerships, or certain other entity types(6) not have any shareholders who are nonresident aliens0:00 Introduction0:38 Domestic corporation1:08 Not an ineligible corporation1:38 One class of stock 2:48 Max 100 shareholders4:17 Certain entities can’t be shareholders5:47 Nonresident aliens can’t be shareholders— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING• A 44-PAGE GUIDE TO U.S. TAXATION• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS• MANY MORE FREE PDF GUIDES AND SPREADSHEETS* http://eepurl.com/dIaa5z— SUPPORT EDSPIRA ON PATREON*https://www.patreon.com/prof_mclaughlin— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/* https://michaelmclaughlin.com

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Resources for Accountants

I used ChatGPT to setup the Accounting process for a company [Video]

Join 10,000 Accounting/Finance professionals who enrolled in the Controller Bundle (includes the Controller Academy course) at 30% off with code 30offcourse:https://thefincontroller.comEnroll in the Controller Academy 🚀https://thefincontroller.com/p/controller-academy[coupon 30OFFCOURSE for 30% discount]🔥Take 30% off when you enroll in my online course “Night Before the Accounting Interview Guide” including All Levels Q&A🔥:https://thefincontroller.com/p/the-night-before-your-accounting-interview-course-for-all-levels?coupon_code=30OFFCOURSEHey guys, in this video I show you how I used ChatGPT to set up the Accounting process of a new company. ———————————–Hang Out with me on social media:📸 https://www.instagram.com/the_financial_controller/📱https://www.tiktok.com/@thefinancialcontroller🙋🏼‍♂️https://www.facebook.com/groups/780732429036886/?source_id=101273467885666DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!All views expressed on my channel are mine alone. Not intended as financial or professional advice

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Resources for Accountants

What is Pre market? – Youtube Shorts [Video]

#shorts #premarket #stockmarket #wallstreetmojo #trading #investing What is pre-market? | MUST WATCH | WALLSTREETMOJO A bearish market is when the prices of financial assets, be it stocks, bonds, derivatives, commodities, metals, cryptos, etc., fall. A bear market can result in an economic collapse, market crash, business stagnation, reduction in job opportunities, and ultimately layoffs. To know more about it, check out our Youtube video. https://www.youtube.com/watch?v=nx3LafIGM64 ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo

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Resources for Accountants

Bearish market?? – Youtube Shorts [Video]

#shorts #bearishmarket #bear #wallstreetmoj0What does bearish market mean? | MUST WATCH | WALLSTREETMOJO A bearish market is when the prices of financial assets, be it stocks, bonds, derivatives, commodities, metals, cryptos, etc., fall.A bear market can result in an economic collapse, market crash, business stagnation, reduction in job opportunities, and ultimately layoffs.To know more about it, check out our Youtube video. https://www.youtube.com/watch?v=XThoCpstvuI========================================================================== Subscribe to Our Channel – Youtube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn https://www.linkedin.com/company/wallstreetmojo/ Facebook https://www.facebook.com/wallstreetmojo Instagram https://www.instagram.com/wallstreetmojoofficial/ Twitter https://twitter.com/wallstreetmojo

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Resources for Accountants

Cash Conversion Cycle [Video]

The cash conversion cycle (or cash-to-cash cycle) is the length of time between (1) when a company pays cash for its inventory and (2) when it receives cash from its customers. The cash conversion cycle is the sum of (a) the number of days it takes to sell inventory and (b) the number of days it takes to collect receivables MINUS (c) the number of days it takes to pay the company’s suppliersCCC = Days to Sell Inventory + Days Sales Outstanding – Days Payable OutstandingThe cash conversion cycle is important because it tells you how long the company needs to finance its inventory. And the longer the cash conversion cycle, the more financing the company will need.For example, let’s say a company purchases inventory from a supplier today. The supplier says the company can pay for the inventory in 25 days. But the company doesn’t sell the inventory for 40 days. And once the inventory is sold, it takes another 30 days to collect cash from the customer. Thus, when it’s time to pay the supplier for the inventory (25 days) the company is still 45 days away from receiving cash for the inventory (30 + 40 – 25). The company needs to pay for the inventory on day 25 but doesn’t receive cash for the inventory until day 70. That 45-day period of time is the cash conversion cycle.The company will need to borrow money or come up with some other form of financing to bridge the gap until it receives cash from customers .A long cash conversion cycle can lead to costly finance charges, so companies can save a lot of money by shortening the cycle.#shorts — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING• A 44-PAGE GUIDE TO U.S. TAXATION• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS• MANY MORE FREE PDF GUIDES AND SPREADSHEETS* http://eepurl.com/dIaa5z— SUPPORT EDSPIRA ON PATREON*https://www.patreon.com/prof_mclaughlin— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/* https://michaelmclaughlin.com

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Earnings season: Easy explanation [Video]

This video will teach you about earnings season and how you can use it best. #earningsseason #quarterlyresults #wallstreetmojo #financialresults #corporateearnings Chapters: 00:00 – Introduction 00:45 – What is earnings season? 02:25 – How to make the best use of the earnings season? 03:42 – Important concepts 05:16 – Conclusion What is earnings season? Companies must release their quarterly earnings as per the law and usually release them within two weeks of the quarter's last month. Most companies release their earnings during April, July, October, and January. This is known as earnings season. (Explained in detail in the video) How to make the best use of the earnings season? Investors usually look for companies that beat the estimates vigorously, and if everything else looks good, they may invest in those companies. Many market participants also use options strategies like straddles to capitalize on the market's volatility that the earnings season brings. (Explained in detail in the video) Important concepts Earnings surprise Bellwethers Aggregate expectations vs aggregate reality (Explained in detail in the video) This will be all for this video on earnings season. Don’t forget to subscribe to the channel, give this video a like, and share it with others. ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo

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Resources for Accountants

Tax Rules for S Corporations in the US [Video]

This video provides an overview of the tax rules for S corporations in the United States. An S corporation is a business entity type that provides the limited liability of a corporation but is taxed as a flow-through entity (no double taxation like C corporations). Profits (or losses) of the S corporation flow through to shareholders and are taxed at the shareholder (but not corporate) level. An S corporation must be organized in a U.S. state. After creating a corporation, shareholders must file Form 2553 with the IRS to elect for the company to be treated as an S corporation. Not all corporations be an S corporation, and there are requirements based on the type of corporation, the number of shareholders, and types of shareholders. Income and deductions of an S corporation are allocated to an S corporation on a pro rata basis. In contrast to partnerships, special allocations (non pro rata) are not allowed. Distributions to shareholders are generally nontaxable to the extent the shareholder has basis, although distributions can be taxable if they exceed the shareholder's basis or if the distributions pertain to earnings and profits (E&P) accumulated by the corporation prior to its election to become an S corporation. A shareholder's basis is increased by capital contributions, share purchases, and the shareholder's pro rata share of income items, while the shareholder's basis is decreased by nontaxable distributions to the shareholder and the shareholder's pro rata share of deductions and losses (although the shareholder's basis can never go below zero). In contrast to partnerships, a shareholder's basis is not increased when the S corporation borrows money (unless the shareholder loans money to the S corporation). While S corporations are flow-through entities and are thus not subject to income tax, S corporations may be subject to taxes in certain situations. 0:00 Overview 0:33 What is an S corporation? 2:51 How to create an S corporation 3:40 Requirements to be an S corporation 8:01 Allocating income and deductions 11:19 Tax consequences of distributions 14:53 Calculating a shareholder's basis 17:13 Taxes on S corporations — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com

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What is Trading desk? -Youtube Shorts [Video]

#shorts #tradingdesk #financialmarkets #wallstreetmojo What is a trading desk? | MUST WATCH | WALLSTREETMOJO A trading desk would be a bank or financial institution department that buys or sells financial assets on behalf of clients. The trading desks would comprise expert traders with vast knowledge about the mechanisms of the markets, and they know how to get the best price for their clients. To know more about it, check out our Youtube video. https://www.youtube.com/watch?v=4FW8kXtr-is ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo

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Take or pay – Youtube Shorts [Video]

#shorts #takeorpay #contractualclause #wallstreetmojoWhat is take or pay?| MUST WATCH | WALLSTREETMOJO The take or pay clause basically stipulates a buyer takes the goods from the seller in exchange for the pre-determined amount. They must pay a fine if they refuse to take the goods.So what this contractual clause does is that it protects sellers in case the buyer refuses to honor the terms of the contract.To know more about it, check out our Youtube video. https://www.youtube.com/watch?v=se4du84LgpY========================================================================== Subscribe to Our Channel – Youtube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn https://www.linkedin.com/company/wallstreetmojo/ Facebook https://www.facebook.com/wallstreetmojo Instagram https://www.instagram.com/wallstreetmojoofficial/ Twitter https://twitter.com/wallstreetmojo