In this lesson, uncover the essentials of the BASE formula with Nick Palazzolo, CPA, as he breaks down the fundamental components of accounting balances. Using trade receivables as an example, Nick delves into beginning balances, ending balances, and the various additions and subtractions that impact these figures—much like managing a personal bank account. He illustrates how to approach questions commonly found on the exam, involving a bit of algebra to deduce beginning balances when given the other variables. With practical explanations, Nick sets the stage for subsequent discussions on allowances for doubtful accounts and bad debt expenses without giving too much away, maintaining a sense of anticipation for what's to come.
Lesson: BASE Formula
In this lesson, uncover the essentials of the BASE formula with Nick Palazzolo, CPA, as he breaks down the fundamental components of accounting balances. Using trade receivables as an example, Nick delves into beginning balances, ending balances, and the various additions and subtractions that impact these figures—much like managing a personal bank account. He illustrates how to approach questions commonly found on the exam, involving a bit of algebra to deduce beginning balances when given the other variables. With practical explanations, Nick sets the stage for subsequent discussions on allowances for doubtful accounts and bad debt expenses without giving too much away, maintaining a sense of anticipation for what's to come.
Updated: Oct. 20, 2021 Create an account