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Hello, in this video we're going to categorize the different accounts in which elements of the financial statement they belong.
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So first, we have retained earnings.
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So retained earnings is a portion of a company's profit that is held for or that is held or retained from net income.
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And this is safe for future use as shareholders ' equity.
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Therefore, the answer is it is part of the equity.
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Second, we have sales.
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Okay, a sale determines that the seller provides the buyer with a good service, with a good or service in exchange for a specific amount of money or specified asset.
01:00
So sales is none of them.
01:05
Okay.
01:06
This is actually revenue.
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All right.
01:16
The third is share premium or equity.
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Or some term is additional paid in capital.
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Paid in capital.
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So this is part of your equity.
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Fourth, we have inventory.
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And this is very obvious.
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This is part of.
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Of your asset...