Adjusting Entry Mistakes: (Part 1) Overstating and Understating Expenses || Business Debunked
Channel: Business Debunked
Date: 22/09/2020

When companies fail to make proper adjusting entries, all hell breaks loose (well... kind of). This video explains how overstating or understating expenses impacts a company's net income and retained earnings over multiple periods. 

This video was produced in partnership with the UBC Sauder School of Business.

🛌 Related Videos 🛌
For a refresher: https://youtu.be/HeuIu8CsJOI
To review the basics: https://youtu.be/0_Gtr1tO0r8
To keep learning: https://youtu.be/fW31FmawkSo

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0:00 Intro to over and understatement of expenses
1:18 Understating expenses: forgetting to record an expense
2:10 Understating expenses: forgetting to adjust a prepaid expense
2:43 Understating expenses: long-term impact on financial statements
6:04 Overstating expenses: recording an asset as an expense
7:17 Overstating expenses: long-term impact on financial statements
8:26 Summary and takeaways

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🛌 Special Thanks To 🛌
Scripting and Filming by Maddie Zapach
Animating and Editing by Arkie Liu
Advising by Dr. Xin Zheng

For more information, please contact businessdebunked@gmail.com

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