Adjusting Entry Mistakes: (Part 2) Overstating and Understating Revenues || Business Debunked

In Part 2 of our series on adjusting entry mistakes, we talk about what happens when companies overstate or understate their REVENUES. Bad things, apparently! We'll look at examples of how these mistakes impact a company's net income and retained earnings accounts over multiple periods. This video was produced in partnership with the UBC Sauder School of Business. 🛌 Related Videos 🛌 To review the basics:    • What is Accrual Accounting? Part 1: Revenu...   To watch Part 1:    • Adjusting Entry Mistakes: (Part 1) Oversta...   * * * * 0:00 Intro to over and understatement of revenues 0:39 Understating revenues: forgetting to record an accrued revenue 1:37 Understating revenues: forgetting to adjust a deferred revenue 1:54 Understating revenues: long-term impact on financial statements 2:34 Overstating revenues: recording cash as revenue (deferred revenue) 3:34 Overstating revenues: long-term impact on financial statements 4:04 Summary and takeaways * * * * 🛌 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 * * * * 🛌 Sound FX Used 🛌 Free sound effects from https://www.fesliyanstudios.com Additional sound effects from https://www.zapsplat.com 🛌 Images Used 🛌 Music cd case vector image designed by nicemonkey; Cartoon round-the-clock boutique vector image designed by vectorpocket; Jeans vector image designed by alegria111; Floral antlers vector image designed by relato; Moose head logo icon vector image designed by brandingashell; Hanging t shirt vector image designed by Wachirakl; Ladyluck sexy cowgirl vector image designed by ClipArt4U; Cartoon shop-window of boutique clothing vector image designed by vectorpocket; Halloween party ticket card template vector image designed by kraphix; Metal chain seamless pattern metallic industrial vector image designed by vikivector; at https://www.vectorstock.com One Direction image from https://commons.wikimedia.org/wiki/Fi... * * * * This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. For more information, please visit creativecommons.org/licenses/by-nc-nd/4.0/ 🛌 Thank YOU For Watching 🛌