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[music] [noise] thank you. whoo. love it. love, love love. tweet, tweet. [sound] whoo! [sound] you. [inaudible] so happy to be in the bubble.

[laugh] love it. aren't you all the luckiest people in theworld? oh my god, i envy you. hi amanda. >> hi oprah. [laugh]. >> i can't believe i just said that[laugh]. so we have been so excited and eagerlyanticipating this day. this campus has been buzzing since theannounce, announcement

was made last week that you'd be cominghere. and i received. >> thanks for the buzz. i'm so glad you know i still have buzz. so good. >> i received a lot of support and advicefrom my friends and that was really great and ijust wanted to say i think the best advice i've heard wasdon't worry amanda, if you mess up, oprah can justinterview herself [laugh].

>> [laugh] so, if i falter, feel free to ask yourself some questions, and we'll,and we'll be good. [laugh] but to get things started, i want,i thought we'd frame today's talk withframing three sections with quotes of yours that you shared afterwrapping up your 25th season and final season of the oprahwinfrey show. and i thought some of these quotes, i meanyou share so much wisdom but, these these really spoke to me, and thought would be agreat way to frame our discussion. >> okay.

>> so this first one that i will read foreveryone and for you so you don't have to strainyour neck is you have to know what sparks the lightin you so that you, in your own way, canilluminate the world. so i wanted to take this time to talk about your early career and how youdiscovered your calling. so lets go back to when you were collegeage. did you know that you wanted to get intotv and media specifically? >> no i did not.

i thought that i was going to be ateacher. i was in my sophomore class at tennesseestate university. i'd already been working in radio since iwas 16 and my i remember i was in mr. cox's drawingclass for theatre. and i was terrible drawer. he said, i couldn't draw a straight linewith a ruler. [laugh] and and i got a call in thatclass, from a guy at the local station cbs, and he have been calling meseveral times when i was working in radio. so i started working in radio at 16, andone

of them is fire prevention contest,another one story. and so when i went back to the station topick my prize, some guy said, would you like tohear your voice on tape. i said sure and i started reading thiscopy on tape. they called everybody in the building,said here this kid read. i was 16 they hired me in radio. so i was in radio at 16. and so i started getting calls about myfreshman year to come into television. i had never thought about it.

and still was living at home, and couldn't figure out how i'd manage those, i hadbiology at 1 o'clock, and so i couldn't figure outhow i would be able to manage my schedule. [cough] and mr. cox said to me, the onesame, same professor said you can't draw a straightline with a ruler. he said, i came back from, from takingthis phone call and he said who was that i said there's thisguy at cbs he keeps calling me, he wants me tointerview for a job, and mr. cox said, that is why you go toschool fool.

[laughing] so that cbs can call you. [laugh] that is why you are in school. so i, he said you, you leave now and gocall him back. and, and, i did. and i was hired in television not knowinganything about it. >> mm-hm. >> having in mind barbera walters butthinking. oh, okay i can do that. not knowing how to write or film oranything.

>> and i think it was because it was the,it was the times and i literally had somebody who was willing to work with methat i, that i managed to, to find my way. but i had to find my way, because, thereporting never really fit me, and what did work forme. i'm this old, i'm so old that when i started that it was the year of liveaction cam. [cough] and so, it was like video cameraslive, and so, the news stations would do a live, a live shot they would throw to somebody live even if nothing was goingon.

>> right. >> just so they could say live action cam. and what i found was i wasn't so good atthe writing part but if i was just standing up and talking aboutwhat had just happened it was really good. and then i started to feel, so i started at 19 working in television, became ananchor immediately afterwards. my father still had an 11 o'clock curfew. can you believe such a thing? [laugh] that i am, that i am

the 10 o'clock anchor [laugh] in nashvilletennessee. i am the woman on the newscast. [laugh] reading the news, and my fatherwould say be home by 11. [laugh] and i'd say, dad, the news is onat ten, he goes and it's off at 10:30 so be homeby 11. [laugh] so i, i, i had a very strictgracier father. so, anyway, i, i could feel inside myself,that reporting was not the right thing for me even though iwas happy to have the job. >> i got an offer to go to atlanta.

i was making $10,000 a year in 1971, butstill in college, so i was thinking i was doingpretty good. >> yeah. >> i got an offer to go to atlanta for$40,000 which i thought. it's over. [laugh] i'm gonna make $40,000. and my boss at the time said to me you donot know what you don't know. >> and you need to stay here until you canlearn to write better until you can can perfectyour craft as, as a journalist.

and so i, i he said we can't give you 40,but we can give you 12. so [laugh] so i stayed and you know thereason why i stayed is cuz i could feel inside myself that even though the 40was alluring at the time, that he wasabsolutely right. so to make a long story short, cuz i'd be here all day just talking about how it allcame about. i started listening, to what felt like thetruth for me. >> a couple of years later i moved tobaltimore. i could feel that as a reporter, and bythis time, 22, i'm making 22,000.

i met my best friend gale there who saidoh my god, can you imagine when your thirty andyour making 30,000. [laugh] and then you're 40 and then it's40,000. [laugh] we actually had that conversationin the bathroom. so this is i started to feel thatreporting wasn't for me. but i had my father, i had my friends. everybody was saying, oh my god, you're,you're an anchorwoman, you're on tv. i mean, you can't give up that job. >> and when i was, by the time i was

making 25, my father goes, you just hitthe jackpot. you not gonna make no more money thanthat. that's just it. so i was torn between what the world wassaying to me, and what i felt to be the truth for myself. it felt like an unnatural act for mereporting, although i knew that to a lot of people, it wasglamorous. and, i started to just inside myself thinkwhat, what

do i really wanna do, what i really wannado. and i will say this. knowing what you don't want to do is thebest possible place to be if you don't knowwhat to do. because knowing what you don't want to doleads you to figure out what it is that you really dowanna do. so you discovered talk then, right? around that time? >> i didn't discover talk.

i was being, i got demoted. >> god. >> they wanted to fire me but i was, i wasunder contract. they didn't wanna give up the 25,000 sothey were trying to keep me on to the end of theyear. so they put me on the, this is how lifeworks, [crosstalk] they put me on a talk show to try andavoid having to pay me the contract out and the momenti sat on the talk show interviewing the carvel icecream man and his multiple flavors.

[laugh] i knew that i had found home formyself. because when i was a news reporter, it wasso unnatural for me, i, you know, to cover somebody's tragedies and difficulties andthen to not to have feel anything for it. and i would go back after a fire. >> and i would take the blankets and theni would get a note from my boss saying, what the hellare you doing? >> you're just supposed to report on it. >> can't be that empathetic. >> can, cannot be that empathetic.

and it felt unnatural for me. so if i were to put it in business terms,if it were were to leave you with a message, that the truth is i have from thevery beginning listened to my instinct. all of my best decisions in life have comebecause i was attuned to what really felt like the nextright move for me. and so, it didn't feel right. i knew that i wouldn't be there forever. i never even learned the street inbaltimore, because i thought i was there longer than i thought, i was there eightyears i should've learned the streets.

[crosstalk] i kept saying to myself i'mnot gonna be here long, i'm not gonna be here, i'm not gonna be here soi'm not gonna learn the street. so when i got the call to come to chicago. >> after you know starting with a, with acoanchor and, and working in talk, for several years, i knew that itwas the right thing to do. and i knew that if i didn't even if i,didn't succeed cuz at the time, there was a, there was a guynamed phil donahue. >> who was the king of talk. and was on in chicago, and every singleperson,

except my best friend gale, said you aregonna fail. every single person, [inaudible] my bossesby this time thought i was terrific, and said, you're gonna, you're,you're waking into a land mine. you're gonna fail. chicago's a racist city. you're black you're not gonna make it. everything to, to keep me same. then they offered me a car and apartmentand all this stuff, and i said no. if i fail, then i will find out what isthe next thing for me.

>> what is the next true thing for me. >> it felt right to you, so you went forit. >> cuz it felt like this is now the move ineed to make. and i was not one of those people you know, all of my the people who worked withme in the news, they would have their tapsand they'd have their stories, and they'd have youknow resume's ready. i didn't have any of that, cuz i knew thatthe time would come. >> where i would, where what i neededwould show up for me.

>> and when that showed up, i was ready. because my definition of luck, is preparation meeting the moment ofopportunity. >> and i was prepared to be able to stepinto that, that, that world of talk in a way that i, i knew icould do it. >> great. so, often in your career i'm sure you werea minority. perhaps as the only woman. the only black person, the only personfrom a poor family.

did this pr, affect you on yourprofessional path? and how did you navigate situations inwhich you might have felt more alone? >> hm. >> and now how did that impact how youlead and how you might help people who may befeeling that same thing? >> okay, that's a lot of questions. >> i'm sorry, all right let's let's-. >> let me put my glasses on. >> i figured i had you here, i was gonna,i was gonna ask as much as i can.

>> oh, amanda went deep on me for a minutethere. whoa. back up sister girl, c'mon, back up. [laugh] so first one is. >> so how did you navigate in which youwould have felt more- >> always the only, only woman walk in theroom- >> still and there is a room full of whitemen, usually older thrills me. just thrills me. [laughing] i just, i just love it.

[laughing] usually the only black personin the room. also, never really concerned me because i,i don't look at people through color. i didn't get to be where i am by, and, who i am, by looking at the color ofpeople's skin. i really, literally, took martin lutherking at his word. and, understand that the content of aperson's character, and, refuse to let anybody else do that tome. so, i love it, just love it. and there's a wonderful phrase by mayaangelou, from a poem that she wrote called

to our grandmothers, that she says, when icome as one but i stand as 10,000. [cough] so when i walk into a room and particularly before i have somethingreally challenging to do or i'm gonna be in a circumstance where i feel i'm going to be you know, againstsome difficulties. i would literally sit, and i would call onthe 10,000. >> i would call on back to the ancestors,iwould call on those people who come before me, call onthose women who forged a path that i might be able to sit in theroom

with all of those white men, and i love itso much. [laugh] i, i call on, i call on that. >> because i know that my being where iam, and first of all, being who i am and where i am didn't come just out of myselfthat i come from a heritage and so i own that. >> and i step into that room not just as myself but i bring all of that, that,energy with me. so it has never been an issue for meexcept when i was, i think, 23, still working in,still working in baltimore.

>> i'd gone to my boss and said that theguy who was working with me, co, co, my cohost on the people are talking show,was making more money than i. and we were, we were cohosts. so i went to my boss and i said, this wasin 1970, i was older than 23, this was 1979, 80, and i said i, ijust would like to-. you know how intimidating it is to go tothe boss in the first place. [inaudible] but i'm gonna go, and i'mgonna stand up for myself. [laugh] and, i said, richard's making moremoney than i am, and i, and i, and i don't think that's fairbecause we're doing the same job.

we sit in the same show. we do the same. and, my general manager said, why, whyshould you make as much money as he? and i said, cuz we're doing the same job. and he said but he has children. [laugh] do you have children? and i said no. he said, well he has to pay for collegeeducations. so he has, he owns his own home.

do you own your home? i said no. he said, he has a mortgage to pay. he has insurance, he has do you have that? no. so, tell me, why, why do you need the sameamount of money? and i said, thank you for your time. and i left. i left.

i didn't complain about it. i didn't file a, a, a, a suit about it. i knew, that in that moment, it was timefor me to go, and that i started the process for myself, of preparing myselffor, you will not be here long. you are not gonna be able to get what youneed. i had a boss at the time who was africanamerican, and had just been for the first time, made an assistant newsdirector, and was drunk with power. drunk with power, and felt it his, ithink, i don't know, i think he woke up in the morning thinking ofthings he could do to harass me.

i decided not to file a suit against it,cuz i knew, at the time, i would lose. >> that no good would come of it, that iwould be blackballed in television, that it would turn into a major thing, and iknew, i didn't have long to stay there. i had a vision for what the future was,even though i couldn't place exactly where my future would be, i knewwho held the future. cuz i am really guided by a force that'sbigger than myself. i know that my being here on the planet isnot just of my own being. >> so you used that as momentum to justleave, cut your losses and go. >> no, i just [inaudible] and i filed itaway.

>> [crosstalk] yeah. >> there will come a time. >> [laugh] huh, it's gonna come back. yeah, you were right. i think you were right. >> when i will be sitting in the sameroom. and it happened, like, in the late 90s. i had the oprah show and i ran into thatguy. lord, jesus, thank you.

[laugh] [laugh] oh my god. oh, one of the sweetest moments i've everhappened. [laugh] oh, go ahead. [laugh] here we go. so, right now, as we sit here, we're about five miles from facebook and sherylsandberg. and last year, she published the book leanin. and it's gotten incredible traction. it had some, you know, criticism as well.

and i was wondering if you were to write abook on women in careers. what would your title be? >> mine would be, actually. mine wouldn't be lean in. it would be, step up and into yourself,because, this is the truth. there is no real doing in the world,without being first. for me, being. your presence, your connection toyourself, and that which is greater than yourself, is far moreimportant than what you do.

but also, is the thing that fuels what youdo. >> and i know that one of the things thatis so important for what happens here. at the graduate school, is that you haveleaders who are self actualized, and understand what your contribution tochange the world can be. you can only do that, if you knowyourself. you can only do that, unless you take,unless you, you cannot do it unless you take thetime. to actually know who you are, and why youare here. now, i happen to know, for sure, thatevery human being comes, comes called.

and that the calling goes beyond thedefinition of what your job is. that there is innate, there is an innate,supreme moment of destiny, for everybody. and, that's why when i was in baltimore, icould feel, this isn't it. >> this isn't it. and then in chicago after 25 years ofsuccess on the show, i started to feel, this isn't it, there is something more, somethingmore, something more that's calling me to what is the suprememoment. and everybody has that.

and you cannot fulfill it, unless you havea level of self awareness, to be connected to what is the inner voice, or the instinct, i call it your emotional gpssystem. that allows you to make the best decisionsfor yourself. and every decision, that has profited me. >> has come from me listening to that inner voice first, and every deci, everytime i've gotten into a situation where i was in trouble, it's because i didn't listento it.

i overrode that voice, that instinct, withmy own, with my own head, my own thinking. i tried to rationalize it, i tried to tellmyself. but, you know, okay, you're gonna make alot of money oh, no. and so, i am, i sit here you know,profitable, successful, by all the definitions of theworld. but, what really, really, really resonatesdeeply with me. is that i live, a fantastic life. my inner life is really intact. my, i live from the inside out.

and so, everything that i have, i havebecause i let it be fueled by who i am. and what i realized my contributions tothe planet could be. and what my real contribution is, it lookslike i'm a, i was a talk show host. it looks like, you know, i'm in themovies. it looks like, you know, i have a network. but my real contribution, the reason whyi'm here, is to help connect people tothemselves. and the higher ideas of consciousness. i'm here to help raise consciousness.

so my television platform, was to helpraise consciousness. at the beginning i didn't realize that. i thought, oh my god, i got a show! [laugh] and it wasn't until i wasinterviewing the ku klux klan one day. and, can you, imagine all the greatlessons come from things that are, that aresometimes challenging. i was interviewing ku klux klan, and i thought, as an african american oh, i'mgonna get them, i'm gonna show for every jewish

person, for every person who's beendiscriminated against. and during the commercial break, i saw the klan exchanging signals and looks at eachother. and then something inside, that instinct,i thought, i am doing nobody any good. they are loving this. they are using me. i think i'm doing an interview. i did not know it at the time. i brought them on, actually, those sameguys back, in for my last year.

and they told me, that they used thatshow, for their recruitment. i could feel that happening. and i made a decision after that show,i'll never do anything like that again. i'll never let my platform be used. >> and i will not be used. and, at the time, in the 90s, early 90s, everybody was doing,confrontational television. and i thought i was above the fray, cuzi'm, cuz i'm not like like jerry springer, idon't do that.

[laugh] so in my egoic delusion, i thoughtbecause i am not that bad. i'm really not bad. but i was doing confrontationaltelevision. i thought i was exposing, men withaffairs. we happened to have a guy on who was talking about how he had an affair withhis wife. and he was crazy enough to come on, withhis wife, and his girlfriend. people ask me, why do people do that. it's because, nobody ever asked him so.

[laugh] you say, would you come on withyour wife and girlfriend? he goes sure>> [laugh] he was thinking. >> he was thinking. so, he comes on with the wife and thegirlfriend. this is the life-changing moment for me. the klan, and this woman. the wife is there. he's in the center, and the girlfriend. and he tells his wife, he announces.

we were live television at the time. and he announced that, to, to, to theworld and to his wife, that his girlfriend waspregnant. and i did, you see her face? your mouth's open, right there. [laugh] i did exactly that. i went, oh my god! and you could hear the gasp in theaudience. and, they're like, and, i literallyreally, it

still makes my eyes water to think aboutit. i looked at her face, and i felt herhumiliation. i felt her shame, i felt it, and i, saidnever again. [cough] i will get outta television, if ihave to do this. and i went and i had a meeting with theproducers, cuz i just had the klan before, now i got theadulteress here. [laugh] and [laugh] some uplifting show, imust say. [laugh] and i said to the producers, weare gonna change. we're gonna turn this around.

and i am no longer gonna be used bytelevision. i am going to use television. what a concept! i am gonna use television, as a force for,for, i didn't say at the time for good, i said. you know, let's think about what we wannasay to the world. >> and how we wanna use this as aplatform, to speak to the world. how do we want to see the world change? how do we wanna impact to the world, andthen let

all of our shows really, be focused, andseated around that. i then said to the producers exactly whati said to you backstage. >> do not bring me a show, unless you have fully thought out what is your intentionfor doing it. because, if there is, if, if, if there isa religion, or a mantra, or law that i live by, i live by the thirdlaw of motion in physics. which is stanford. which is [laugh] for every action, there'san equal and opposite reaction. that is, that is, that is, that is myreligion.

i know that what i'm thinking, andtherefore gonna act on, is going to come back to me, in this, in a, in a, in acircular motion. just like gravity. like what goes up comes down. and so, what also propels the action, isthe intention. so, i don't do anything, without beingfully clear, about why i intend to do it. because the intention, is going todetermine, the reaction, the result, or the consequencein every circumstance. i don't care what it is.

so, i said to my producers, come to me with your intention, at whatever it is,whatever shows you're proposing, whatever ideas you'reproposing, and then i will decide based upon the intention, do i reallywanna do that? >> is his is how we wanna use thisplatform? and that really is the secret to why wewere number one, all those years, is because it was an intention-fueled, intention-based comingout of purposeful programming. [crosstalk] yeah, that's what it was.

>> great, and that's a perfect segue to goto our second section. which i read this quote, and it juststruck me as so true, and i wanted to delve into it. i've talked to nearly 30,000 people onthis show, and all 30,000 had one thing incommon. they all wanted validation, i will tellyou that every single person, you will ever meet, sharesthat common desire. so, oprah, you are a true renaissancewoman. you know, you have your own network, you

had this amazingly successful show for 25years. you've been in movies. you are one of the most importantphilanthropists of our time. so, what are the qualities? >> i love hanging around you what else areyou gonna say? [laugh] i'm just taking it all in. >> i love it too so we [crosstalk]. >> you know, the part i love the most, isrenaissance woman. when she said that, i went, what does thatreally mean?

>> i don't know but i like it. >> i was a history major so it seemed likea natural. >> i'm a renaissance woman. [laugh] who knew? okay, go ahead. >> good, i'm glad you like it [laugh][cough] what are the qualities of your leadership that make yousuccessful at such diverse pursuits? >> mm. >> and what works for, in one area, thatmaybe doesn't work in another?

[cough]. >> well, i tell you. it, it works in all areas because i, mylife is fueled by my being. >> yep. >> and the being fuels the doing, so, icome from a centered place. i come from a focus place, i come fromcompassion it's just, it's just my nature, i come from awillingness to understand. and to be understood. and i come from wanting to, to, toconnect.

i mean, the secret of that show, for 25 years, is that people could see themselvesin me. all over the world. they could see themselves in me. and even as i became. more and more financially successful,which was a big surprise to me. i was like, oh my god! this is so exciting! [laugh]

>> you mean, you got more than that30,000? >> i got more than 30,000, by the time iwas 30, so [laugh] so my. [laugh] but, what, what i realized is. through the whole process, because i'mgrounded, in my own self, that although i could have more shoes, myfeet stayed on the ground. although i was wearing better shoes, theseare kinda cute today too. [laugh] so i could keep my feet on the ground, even though i could get moreshoes. and i can understand.

i could understand that it really was,because i was grounded. i've, i've done the, was doing, andcontinued to this day, to do the consciousness work. i work at staying awake. and being awakened, is just another wordfor spirituality, but spirituality throws people off, and theythink you mean religion. when i was hiring people for my company,for own looking for presidents. when people would come in, i'd say, tellme what is your spiritual practice? and literally, would throw out, peoplewould [unknown] well, i'm not religious.

i said, i didn't ask you about yourreligion. i asked you what's your spiritualpractice. what do you do, to take care of yourself? what do you do to keep yourself centered? what do you do to let, and, you know onewomen started crying. you know that's not the person. that's a sign. >> that's a sign. so, so to answer your question.

>> everything is fueled that comes from me really wanting to be a better person onearth. >> and this is what i know to be true, the reason why the show worked is because iunderstood that that audience. my viewers, the people who watched useveryday, and would come, and just like you all did. get tickets, and they would come withtheir, you just came across campus, but that'sgood, too. but people would come from all over theworld, just to be

there with their aunts, their mothers, andthey'd come with their cousins. and there'd be a few men and they'regoing, what the hell [laugh]. or saying, well, i went to oprah with you,i went to oprah. at least get me clear for three or fourweeks, i went to oprah. i had such regard for that, and i just had a conversation with john mackey whoruns whole foods. and has written this fabulous book, you should get it, called consciouscapitalism. hm.

>> and he was talking about how the investment in the stakeholders, the peopleyou are serving. that connection between the people whoyou're trying to serve and sell to is equally as important as the peoplewho you're buying from. >> equally as important as the people whoare, you know, supporting you financially. as your stockholders if you were, youknow, you know a public company. so, i always understood that there really was no difference between me and theaudience. at times, i might have had better shoes.

but at the core, the core of, of whatreally matters, that we are the same. you know how i know that? cuz all of us are seeking the same thing. you're here at this fabulous school andwill go out into the world. and each pursue, based upon what youbelieve your talents are, what your skills are, maybe your gifts are, butyou're seeking the same thing. everybody wants to fulfill the highest,truest expression of yourself as a human being. that's what you're looking for.

the highest, truest expression of yourselfas a human being. and because i understand that. i understand that if you're working in abakery and that's where you want to be. and that may be the, that may be what youalways wanted to do is to bake. >> mh-hm. >> pies for people, or to offer your gift. then, then that's, that's for you. and there's no difference between you andme, except that's your platform. >> that's your show everyday.

so my understanding of that has allowed meto, you know. >> reach everyone. >> to reach everyone. and, and there's no way that you wouldn't. because that, that's what i truly feel. and when i sit down to talk to somebody,whether i'm talking to a murderer. i sat down and i interviewed a guy who,killed his twin daughters. i've interviewed child molesters. trying to figure out what, what it is,what is,

what it is they do and why they do it. obviously lots of people who have beenvictimized through molestation. presidents, politicians, beyoncã© herself[laugh]. >> ha beyoncã©. >> at the end of every interview themurderer to beyoncã©. the question everybody asks that you mentioned is, wasthat okay, how was that. everybody says that and i, and i know justwait for it. was that okay, was i okay, and when ifinish i'll say to you, was i okay.

>> i'm gonna ask you too. you're very okay. you're doing very okay, very okay. >> whew! >> very okay, so, what i started to feel,feel, sense, is that there's a common thread that runsthrough every interview. it doesn't matter what is, or what it isabout, everybody wants to know. and this is the truth, all of yourarguments are really about the same thing. it's about.

did you hear me? did you see me? and did what i said mean anything to you? that's what everything's about. so the reason why i left my boss's office,when i was asking for a raise, i, i knew he didn't hear norsee me neither. and that i was not going to get thevalidation that i needed. now i couldn't articulate that at thetime, but i just knew let met get out of here.

but now, i know, i can feel it inside ofmyself. i'm not going to get the validation thati'm looking for. i also know, that that's what every humanbeing is looking for. they are looking to know, are you fullyhere with me. are you fully here, or are you distracted? that's what your, that's what yourchildren want to know, that's your, what the people you work for want to know,that's what you want to know. is did, did, did you hear me? and every argument isn't about what youthink your arguing about.

it's really about, but can you hear me? >> yes ma'am. >> and many people have even said it. >> yes. >> have you not said it? you're not hearing me. >> you're not hearing me. so, having, having that understanding. and i would have to say that the show, oneof the reasons why

i live such a fantastic life, is because ipay attention. i pay attention to my life. and your life is your greatest teacher. every single thing that's happening to youevery day. your, your joys, your, your, yoursadnesses, your challenges, your worries, your, everything is happening to bring youcloser to in here. everything is trying to take you home toyourself. and when you're at home with yourself,when you're solidly there, connected towhatever you call creation.

even if you don't call it anything,connected to an energy force that is. that has unlimited power for you. you could connect to, to that. you, you, you are your best. my greatest, one of my greatest lessonscame from a guy who wrote a book called seed of thesoul. i was doing him on the show and i startedtalking this consciousness spiritual talk, you know,two months after i started the, the show. and my producers will all be like, oh god,there she goes again.

but i knew that even though masses ofpeople were not tuning in for that. that the whole purpose of that platformwas to try to lift people up. and now, i have a network and i canarticulate what it is i'm trying to do. i'm trying to bring little pieces of lightinto people's lives. because what is my job? my job is not to be an interviewer. my job is not to be a talk show host orjust to own a network. i am here to raise the level ofconsciousness, to connect people to ideas and stories, so that they can seethemselves and live better lives.

>> thank you. i want to switch gears and focus a bit onphilanthropy. >> are you worried about getting all ofyour stuff in? >> no, we're doing great. we're just going to keep going. i think everyone likes this, right? we're good? [sound]. >> so, i watched your interview with theforbes conference on philanthropy.

and you said something really interesting. which is that early on some of yourbiggest mistakes in giving were because you madeemotional decisions. >> and yet we learn here at the gsb like, one of the crucial messages that we takeaway from us. is that it is really important to be, as you said before, self aware, to beunderstanding. often to share our emotions with others. you yourself have been the master of youknow,

harnessing vulnerability, with yourselfand your guests over the years. so, how do you strike a balance betweenemotion and logic. how do you make sure that you're makinglogical decisions when you're giving. >> these are so well thought out. >> okay, let me think about that for amoment. very good. well i would have to say, that, you needboth. you need emotion and you need logic. so, in the beginning, i was purelyemotional.

made a lot of mistakes. i happened to be sitting. i was sharing this story with dean salonerjust before he came on. i was sitting in nelson mandela's living room. and i'm not just saying that to name drop. >> [laugh]. >> i was actually sitting there. >> you stayed with him, right.

>> i stayed with him for, stayed with himfor ten days. and as i said to the dean [unknown] icould have, i literally could have written abook called 29 meals. cuz i had 29 meals with him at thatparticular time. i wish i had. >> yeah you should. >> i should've. >> you should do it now. >> i didn't record it so some things i

think was that the 2nd meal or the 12thmeal. anyway, so i was sitting in nelson,sitting with adiva and. we were talking about how, how do youreally make an impact in the world. and we were reading the paper and we, i'dreached the point where i was no longer like, oh my god what am igonna say. cuz we were just sitting in silencereading the paper. and there was an article in the paperabout, you know, some tragic situation. and we both started talking about the wayto end poverty is through education. and i said to him, i really at some pointwould like to build a school over there.

and then, he got up and called theminister to education, and said get over here now, oprah wants tobuild a school. and i was like well i was thinking aboutit. i didn't say i wanted to do it today. but so we literally started the processthen. it was an emotional decision for me inthat i think philanthropy should come out of you, your doing shouldcome out of your being. everybody knows my story as a poor negrochild growing up in apartheid mississippi. and if it were not for education and beingborn at the right time.

cuz i was literally born in the year ofdesegregation. five years before, three years before, twoyears before, nobody would of even had the hope that my life could ofbeen any different. so because i was born at that time, andliterally moved out of mississippi by the time i was in my firstclassroom. i was in kindergarten. wrote my kindergarten teacher a letter,ms. new. i said, dear ms. new, i do not belonghere. >> oh.

>> cuz i know a lot of big words. and then, i wrote every big word i knew. elephant [laugh], hippopotamus,mississippi, nicodemus. shadrackmeshackinthebindigo from thebible, so, and then ms news says, who did this? i said, i did. so,they marched me off to the principalsoffice, the only time i was ever in there. principals office, principal made me write thosewords again and

i got myself out of kindergarten, intofirst grade. >> oh my god. >> first grade, skipped second grade,hellerher. the renaissance began. >> yea. yea, yea. >> you've always had this conviction. you've always, it seems like you've alwaysknown who you are, even if you were. >> well i knew i didn't belong there withthose kids.

>> you knew that. >> in kindergarten, you're sitting there,that's what i'm talking about listen to yourinstincts. you're looking around and say these kids[laugh] they are playing with some blocks[crosstalk]. and i know nicodemus [laugh]. i do not think i belong in here, i do notbelong in here so my point is, [laugh] my point is education reallyopened the door as we all know. i'm not gonna give you the educationspeech.

how do you change a person's life. i had prior to starting my school in southafrica, i had this big idea that i was going to,emotional. that i was gonna take all, 100 familiesout of the projects, in cabrini green. and i was gonna give them a new life and i was gonna buy them homes and stuff andthat did not work. it failed miserably. i had a big sister program that i started,failed miserably. so i realized that for me.

first of all, i realize you don't change, as you all are recognizing through theseed program. you first have to change the way a personthinks and see themselves. so you've gotta to create a sense ofaspiration, a sense of hopefulness so a person can see, can begin to even have avision for a better life. and if you can't connect to that, then,then, then, then you, then you lose. you lose and they lose. and it's just money after money aftermoney. so, for me it's using my philanthropy todo what i have found to be

enormously, helpful. you know, the light in my life waseducation. so for me, in the beginning when i startedto make money, especially when it's published,everybody and your brother calls you. and then you've got to make a decision. am i going to do what everybody else wantsme to do? or, am i going to be led by who i reallyam? and i learned, as will happen to anybodywho's successful in your family, people start treating youlike the first national bank.

and, you've got to decide. you've got to draw the boundaries foryourself. and decide, how are you gonna use, yourmoney, your talent, your time, in such a way that it's going toserve you first. because if you, if it doesn't allow you tobe filled up. then you get depleted and you no longer,you can't keep doing it. so my decisions are now emotional andlogical. meaning i choose education, but i do it insuch a way that's actually going to benefit theperson that i'm serving.

then it's not just, oh i want to helppeople. so to move on to our last part, you saidat the end of your 25 years, gratitude is the single greatest treasure i willtake with me from this experience. so now, you started your own network andyou continue to be very involved in your philanthropyand your school. is there anything left that you're scared totry? >> whoa, amanda. you must have been up all night long.

>> i've prepared a little bit. just a little. >> oh, my goodness. anything left that i'm scared to try? no. [laugh] no, and i'm just trying to thinkwhat, i'm just trying to think, well, is there somethingthat i haven't thought of. >> well, there's not much you haven't doneso. >> well, but i stay in my lane.

>> i stay, i know where my lane is. i know what my lane is. i know that my real calling is what i saidearlier. i know what it looks like to the rest ofthe world. oh, she's a talk show celebrity but ireally know what i'm here to do, which is the number one thing iwould say to you. first let me answer your question. so no, there's nothing, i'm not scared totry? i haven't even, i had hit my stride but ihaven't done what i ultimately came to do.

there still is a supreme moment of destinythat awaits me and i also knew that during the oprahshow. i've kept a journal since i was 15 yearsold. it's so pitiful when you go back and see how pathetic you were as a person,sometimes. but i always knew even during that show,that the show, we live in a fame culture, we lived in a famecentered world, you know. had this literally been during the renaissance, people would have valueddifferent things.

we've been doing the transcendentalistperiod, people valued different things but in our culture wevalue fame. so i always understood that that was the basis for me being known, in the worldbecause people wouldn't be able to hear you,unless you came with some swag or swagger, youknow? and i also understood that that was justthe foundation to be heard but that there was a lot moreto be said. so for me, owning a network or being apart of a network is

about continuing to use that platform toraise the consciousness. i do a show on sundays, which you can seelive called super soul sunday, where i literally talk to thought leaders from around the world and ask thequestions. not as good as you, i'm gonna consult withyou. >> ask the questions in life that reallymatter to get people thinking about what reallymatters in their lives and the responses that i get from people,just regarding that show let me know that i'm on theright track.

i'm moving in the right direction and so,i'm not afraid because i know that all of us have limitedtime here but the real question is who are you and what doyou want to do with it? and how are you going to use who you are? my favorite line from seed of the soul iswhen the personality, comes to serve the energy of your soul, that isauthentic empowerment. so as graduates of this great school, totake what you've learned here, to take what is apart of your nature and what you've developed as skillsand

what really feeds your passion, to takethat and to align that with the deeper potentialimpossibility of your soul's coming. if you align your personality with whatyour soul came to do, and everybody has it, alignyour personality with your purpose and nobodycan touch you and you wake up everyday and you are firedup. you're just like oh, my god, another day! it's so great!

because everybody has a purpose. so you're whole thing is to figure outwhat that is. your real job is to figure out why you'rereally here and then get about the business of doing that. >> that's it. >> so we all know now what we have to do,right? only wait. [laugh]>> yeah. >> so oprah, thank you so much.

>> are we gonna take some questions? >> well, yeah, so that's what i wanted tosay. i'd love to put it up. >> everybody has a class at 1:15, right? okay, i'll get you out of here. [laugh] they told me hard out. one o'clock. yeah. but so we think we have, do we

have a first question from twitter, comingforward? throughout the session, the first questionasked today was matt sucedo who asked, will youmarry me? >> oh, it looks like he's up there. >> matt, where's the ring? >> matt, do we need marriage? oh my god, that's gonna be such a pre-nupbetween us, i've gotta say. [laugh]>> what else you got, andre?

>> and then we had javier hernandez, whoasked, oprah who has been your favoriteinterviewee and why? >> well, actually, i would have to say,there's so many over the years and the truth is thatthe people whose names that i can't evenremember and you probably wouldn't remember, have been themost revelatory, the most impactful. i mean, watching people step out oftragedies and define triumph for themselves. those people, really, have been the onesthat really

shaped me and made me a better humanbeing. i did an interview once with a woman andactually with doctor phil, where she had come to the show and then wasplanning to kill herself afterwards she said because her daughter had beenmurdered eight years before and she couldn't getpast it and she just wanted to come on theoprah show and talk about it. and phil said to her, why do you spend allyour time lamenting, all these years lamenting the death, insteadof celebrating the life? you've let the one day define your

daughter's entire life and she looked upat him and she said you know, i never thoughtabout it that way before with tears. i could feel that, the shift in her. so the most important moments for me havebeen when literally, i can see that somebodyhas made a shift in the way they see themselves inthe world or you know, what we call now, an ahamoment. those, i live for that, those are myfavorite interviews but most recently, i just lastweek interviewed pharrell.

oh, my god. i was so happy. >> but you made him cry. i didn't make him cry. i didn't make him cry, amanda. >> but he cried but it was happy tears. >> yeah, i would have to say. i don't actually try to make people cryand if i think, literally, we cut a lot of it because hewent into the ugly cry.

[laugh] he went into the ugly cry. >> you could tell it was real. >> yeah, it was very real and so we said,we gotta save the brother. the brother cannot walk out into the worldwith the ugly cry. it's okay to have a little sniffle snifflebut then just don't go [sound]. but i could also feel him. i mean, i understand, you know why? because i just loved him. i just loved him.

anybody who, and anybody who saw thatinterview if you liked him a little bit before, you really loved him afterwardsbecause that's a person who's absolutely connectedto here. >> and he, yeah, he knows his purpose. >> yeah, he does. >> oh, he's very much connected to it andwhen he saw, he started crying when he saw the videos of people all over theworld dancing to the happy song. >> there is a version made here too. >> here?

>> you guys did one too? >> yeah, i think some of the mba onesright? raise your hand if you are in it. >> yeah! >> didn't it make you happy to do it? yeah, so he saw that video, like 30seconds of video from people in all these different countries and thename of the countries were up. he just felt the emotion and the impact ofusing his life in such a way that you're able now totouch all of those

people, which is really what we're alllooking to do and all of us have the ability to do it, atwhatever level you are. at whatever level, and i always say topeople, oh, i have a big stage. some people have a smaller stage. some people have you know, what's yourstage? we're going to take one from the audiencenow. >> let's do it. all right. here we go.

>> introduce yourself. >> hi, i'm kirsten. i'm a second year mba student here at thejsb. so this week at the jsb we're hostingsomething called climate week to raise awareness about climatechange among the business students here. so you've interviewed people like leo toal gore, president obama on this reallyimportant issue. so i want to get a sense from you, how doyou navigate raising the level of consciousness around issues like climatechange that are important, but are

also very complex and politicized? [laugh]we came prepared. we came prepared today, huh? wow. >> i do not know the answer to thatquestion. i do not know. [sound] if i knew that, we would have, iwould have like, made it a club and we would have, i would have had every bodycome join my environmental club. now, i don't know that is such a complex,beautiful

question and the fact that you are evenasking it or engaged in the process of trying to figureout the answer thrills me, cuz that's what wouldhappen here at stanford. so i really do not have an answer to thatquestion. thank you, do we have time for one more? >> you have to because you can't end on aquestion without an answer. >> we got one. >> i came here to get stumped, yeah. >> hi oprah, my name is melissa and iwanted

to know, how do you think about balancingselflessness with selfishness? selflessness with selfishness. why are you asking me that question? [laugh] it's kind of the tension betweenputting yourself first and also, taking care ofothers. okay. well, i would say this. there is no, you have no, well, everybody's heard the whole oxygen maskthing.

the truth is, you don't have anything togive that you don't have. so you have to keep your own self full. that's your job. you know, one of my daughters is here today from oprah winfrey leadershipacademy. stand up shenay, so everybody can see you. [sound] you're going to end your firstyear soon. oh my god, it's your first year. i say to my girls all of the time, thatyou're

real work is to figure out where yourpower base is and to work on the alignment ofyour personality, your gifts that you have to give with the real reason why you're here. that's the number one thing you have todo, is to work on yourself and to fill yourself up andkeep your cup full. keep yourself full. i used to be afraid of that. i used to be afraid, particularly, frompeople

who'd say, oh, she's so full of herself. mm, she's so full of herself and now, iembrace it. i consider it a compliment that i am fullof myself because only when you're full. i'm full, i'm overflowing. my cup runneth over. i have so much. i have so much to offer and so much to give and i am not afraid of honoringmyself, you know. it's miraculous when you think about it.

first of all, for me, my father and mothernever married. they had sex one time underneath an oaktree because she was wearing a poodle skirt in1953. >> and my dad to this day says, i wannaknow what was under that skirt. that's what i wanna know. he wanted to know what was under theskirt. they didn't really have a relationship. she wanted one but you know, he went underthe skirt and that was it and one time, under theoak tree, bam.

renaissance. >> [laugh]>> woman is born. >> that's why i know my life is biggerthan that. my life has to be bigger, as your is,bigger than a moment, than a poodle skirt. it's much bigger. the design, the reason why i'm here ismuch bigger than oh, i think i wanna see what's underthere. so the ability to take care of that, tohonor that, to honor yourself and that which is greater than yourself, that whichwas the reason for your being here.

there's no selflessness in that. only through that do you have the abilityto offer yourself, your whole self, your full expression of who you are,to the rest of the world. so i remember the very first time i had alife coach.they weren't called that at the time but an expert on whoshared with our audience, the women. she did a list and say where are you onthe list? and literally, in that audience, womenbooed her, when she said put yourself top of thelist. this was in 1992.

in 1992, the idea of being top of your ownlist, was people like, how dare she? she doesn't have children. i said, she didn't say abandon yourchildren and go running in the streets. she just said, put yourself at the top ofthe list. nurture yourself. honor yourself. stop the crazy mind chatter in your headthat tells you all the time that you're not good enough because that's the number one, i've found too, issue witheverybody.

the reason people say, you know, how isthat? how is that? >> it's cuz you wanna know how do youmeasure up. well, to know that your just being here,your just being here, however that sperm, bam, hit thategg, however that occurred for you, that your being here is such amiraculous thing and that your real job is to honor that, is tohonor that. and the sooner you figure that out, ohwow, wow, i'm one of the lucky ones. i got to be here.

so how do you continue to prepare yourselfto live out the highest, fullest, truest expression of yourself asa human being? i jst wanna end with this: there are nomistakes. there really aren't any, cuz you have asupreme destiny. when you're in your little mind, in your little personality mind or you're notcentered, you really don't know who you are but youcome from something greater and bigger. we really all are the same. you don't know that, you get allflustered, you get

stressed all the time, wanting somethingto be what it isn't. there's a supreme moment of destinycalling on your life. your job is to feel that, to hear that, toknow that and sometimes, when you're notlistening, you get taken off track. you get in the wrong marriage, the wrongrelationship, you take the wrong job. yeah, but it's all leading to the samepath. there are no wrong paths. there are none. there's no such thing as failure really,because failure is

just that thing, trying to move you inanother direction. so you get as much from your losses, asyou do from your victory cuz the losses are there towake you up. the losses are to say, fool, that is why you go to school, so that cbs can callyou. so when you understand that you don'tallow yourself to be completely thrown by a grade or by a circumstance becauseyour life is bigger than any one experience and if i had, i alwaysask people on super soul sunday to tell me, what would you sayto your younger self?

every person says in one form or another,i would have said, relax. >> [cough]>> relax. it's gonna be okay. it really is gonna be okay because even ifyou're on a detour right now and that's how youknow, when you're not at ease with yourself, when you'refeeling like [sound], that is the cue that you need to be moving inanother direction. don't let yourself get all thrown off,continue to be thrown off course. when you're feeling off course, that's thekey.

how do i turn around? so when everybody was talking about, wheni started this network, if i had only known, good lord, howdifficult it would be. the way through the challenge is to getstill and ask yourself what is the next rightmove? not think about oh, i got all of this to,what is the next right move and then from thatspace make the next right move and the next right move and notto be overwhelmed by it because you know your life is biggerthan that one moment.

you know you're not defined by whatsomebody says is a failure for you because failureis just there to point you in a differentdirection and that's all the time i got right now. [applause]>> good job! good job! [applause] yeah! wow! [applause]

online college programs


hello, i hope everybody's semester is startingout well. this is the first official lecture of accounting 01. now, everybody should havehad a previous session where we talked about class policies. for you face to facers wedid that last time we didn't film that, and for you people at home i did a separate filmingand taping of going through the class policies for you, so please make sure those folks athome are taking this as an online class that you watch that don't just skip it thinkingit's not going to be important. it's very important to succeed in this class i wantyou to know how we're going to do things so, for the people watching at home on you-tubeor on dvds, or on that cable tv channel never skip the lectures ok, watch them in sequencewatch the whole thing. if you try to shortcut

it you'll do yourself harm so, at this pointeverybody knows the class policies and procedures and everything we're going to go ahead, andstart the subject of accounting now, i always like to say at the very beginning some peoplehave to take this class, and it's like "oh i wish i didn't have to take this, but i haveto it's required" some people want to take it. truth be told out of the fifteen of youhere there's maybe only one or two who want to be a full-time accountant someday so sometimesthe question comes up "why do we have to take accounting", and i'll tell you. several reasons,but one of them is statistically speaking about half of you are going to own, or co-owna business sometime in your life. now it may not be your sole source of making money, butit may be just an ancillary income, but you

will own or co-own a business. now i've talkedto some of you, and a lot of my students they want to be entrepreneurs, they want to owna business someday. well if you do that you need to know accounting at least at some level,and you might say "well i'll just hire somebody to do my accounting", but what's the problemwith that? anybody know? it costs money, and what's the other one? you might get rippedoff. you can look at the business section, and see what happens when a business ownergives all of their accounting responsibilities to somebody else. it's like "will we trustthat person?" i could tell you horror story after horror story from my days as a financialstatement auditor of small businesses that somebody ripped them off, because that persondidn't know accounting at all. so, maybe you

won't do all the book keeping, but you atleast at some level need to know accounting. accounting is the language of business, plus,wherever you all end up working there's going to be a bottom line. there's going to be anet income that you need to meet, right, i mean jccc isn't out for profit, but we concentrateon that bottom line too. we have to stay afloat don't we? in your own homes you have financialsituations right? so, the language of business is accounting, it's very important to know,so i know there are a lot of reasons for being in this class, but i want you to rememberthat there's basic concepts of business, and how important it is to apply to accounting.the first thing i want to do is go over and you should have the powerpoint slides foryou folks here in the face to face. i handed

these out to you, and for you folks at home,i have these on angel under the lessons tab. i thinks it's very beneficial to have theseso, you don't have to copy everything down that's on the screen, and you can just takenotes to the side, or however you'd like to do it. let's go ahead and go through the veryfirst slide for chapter one, and that is going to be kind of the definition of accounting.i spend a lot of time on this slide so don't think that every slide we do we'll spend thismuch time on, but i think this is a real nice definition, and i'm not the type of teacherwho's going to give you a test question that says "write out the definition of accounting",because truth be told you can find another text-book, and it probably would be slightlydifferent, but this one has a lot of good

aspects, and i want to concentrate on thata little bit. it says accounting is a system that identifies, records, and communicatesinformation that is relevant, reliable, and comparable to help users make better decisions.let's go off the powerpoint, and come back and i want to step away from that for a second,and take you to a different example i think will help flesh out that definition. let mewrite something down here that has absolutely nothing to do with accounting, and tell meif anybody knows what i'm doing? i'll give you a clue it has to do with sports. i'm sureyou're all like what is he doing? right, any idea what that is? anybody want to make aguess? it has to do with basketball. anybody here play basketball? you've watched basketballright? you know what a free throw is right?

it's when a player gets fouled they go tothe line, and they shoot free throws, right? well, one of the things i did in high school(i love basketball still do), but i couldn't make the basketball team at my high school.so, what i did and this sounds like a geeky future accounting professor thing to do - ikept stats for the basketball team. traveled around with them, and kept stats. so, let'sgo back to this do you see how this applies to free-throws. what this meant is playertwelve got fouled, and he went to the line for two free-throws he missed the first one,so i didn't color in that bubble, and he made the second so i colored that in, you withme? okay then player seventeen got fouled for two shots he made both of them so i coloredin the bubbles. number nine player got fouled,

and that looks a little different doesn'tit? anybody want to venture a guess what that is? not a technical - do you know what a oneand one is? certain types if you get fouled you don't get two free-throws, but if youmake the first one you get a second attempt. does that make sense? so i would draw thatkind-of like a little cherry. so, this guy got fouled and he made the first one, so hegot a second attempt, right? if he wouldn't have made the first one it would have justlooked like that. this one has just one bubble, what does that mean? anybody want to guess?he made the shot, but he got a free-throw so, if you get fouled while making a shotyou make the basket, you get one free-throw. now, why do i show you this, because thishas nothing to do with accounting? well this

is one of the things as a basketball statisticianthat i kept track of for the coaches. now, the next day when i would come to school doyou think the coach wanted me to hand him this report, with the bubbles? go back tothe screen do you think that this is what they wanted? what did they want? they wanteda condensed report, and i made out just a sample report ok, this is kind-of what theywanted. this is a free-throw report for northwest vs. southeast on october 20, 2011. this isthe player jones. this is the free-throws attempted eight, and he made 4 free-throws,so he shot fifty percent. smith went to the line, and attempted ten free-throws only madeeight, and shot eighty percent, do you see what i'm saying? this was the report i gavethe coach. now, why would the coach care about

having this information? to know who the bestfree-throw shooters are may be there's a technical during the game, and who would you want toput to the line, probably your best free-throw shooter, right. you'd want to know who needsto work on free-throws, who's getting better, who's getting worse, right. do you agree ifyou were a basketball coach a report like this would help you make better decisions,is that correct? let's go back to the powerpoint definition, and let's apply this to the basketballexample i just gave. that was a system that identified, recorded, and communicated, wasn'tit? for instance i would hear the whistle blow, and it would identify that i need torecord something, correct? it identified that somebody was going to go to the line, andi needed to record it with that little bubble

method, and there's nothing magical aboutthat little bubble method. i didn't make it up as a common way to keep track of free-throws.eventually i would need to communicate that to my coach, right. now, i would communicateit so it would help him make better decisions. however, for it to be able to help him tomake a better decision, it had to be relevant, reliable, and comparable, what does that mean?let's talk about that, what does it mean to be relevant? to be relevant means it needsto be in regards, to the game that he's concerned about, right? what if i were to give him thefree-throw statistics for the 1972 olympic games between russia and u.s.a., is that relevant?is that going to help him make a better decision? no. so, it has to be relevant, it has to berelated to what he's concerned about. it has

to be reliable. what if i don't know whati'm doing as a statistician - is it going to help him make better decisions? no. whatif i told him "hey coach, here's your report for last night, but i'm going to be honestwith you i was pretty drunk when i did it, there's a lot of mistakes, i fell asleep duringthe third quarter... don't know how reliable it is. is it going to help him at all? no,and i did not drink as a high school student. note that if my mom is watching. the thirdone - it has to be comparable, what does that mean? what that means is there has to be aconsistent method that we are using to keep track of this stuff, there has to be rules.for instance we always count a free-throw made if it goes through the hoop, right? whatif i said "i changed the rules i started to

count the free-throws even if it just hitthe rim and even if it didn't go through, well i changed the rules." is that the waywe've been doing it? no. ok so it's no longer comparable to previous games. is it goingto help him make a better decision? no. go back to that one more time this was a systemthat identified, recorded, and communicated, and if it was relevant, reliable, and comparableit would help him make better decisions. accounting is the same way; now let's stay on this fora second. we identified things that needed to be recorded these will be transactionsthat need to be recorded such as, buying office supplies, or selling services to a customer,or paying our employees, or getting a loan from the bank. we record that information,and eventually we're going to communicate

it through a report, through a summation likeyou were saying. and if that information is relevant, and if it is reliable, and if itis comparable we're following the rules, it will help our users make better decisions.what sort of decisions would you see in the business world that would be aided by financialinformation presented to them in a report? do i want to invest in this company? maybe,do i want to extend credit, or make a loan to this company? how's the business doing?are we going to have enough cash to pay salaries next month? right, if you have a businessyou want to have accurate financial information, financial reports - that's what accountingis about. does that flesh that out a little bit for you? let's move on a little bit, ilike to have our lectures be a mixture of

me talking, and then maybe taking a breakand doing some exercises and then going over those. i don't like it just to be me talking,but like i always have to say this first lecture is a lot of me talking, because we reallyhaven't done anything yet. so please don't be concerned if you're going "gosh... arewe just going to have to listen to this guy every fifty minutes every time?" no, we'llbe doing stuff that's why i want you to bring your textbooks and your calculator to class.there will be a lot of times where we take breaks, and you'll work on it for a while,but this lecture is kind of me jumping around and giving a lot of basic business concepts,so we can start to build our foundation. alright let's go on, there are two sets of users ofaccounting information. there are external

users, and there are internal users. externalusers are those that do not work at the company. they work outside of the company such as,lenders, or banks, or credit unions, or share holders, or stock holders, or potential shareholders and stock holders, the government, consumer groups, customers, external auditors.do you know what an audit is? an audit is when you go in and you look at the recordsof a company, and you verify it. sometimes people think of an irs audit. all of thoseindividuals are external to the company, correct? they don't work there, they're just they'reoutside the company. now, external user's financial accounting is the accounting thatserves external users primarily, and that's this class. now, there are also internal users,these are the people that work at the company

such as, managers, or the sales staff, orthe internal auditors. some companies are so big for instance; sprint, they have theirown internal audit department they're internal within the company. there's also the controller,do you know what a controller is? the controller is the chief accounting individual. he orshe is in charge of all the accounting - they're called the accounting controller, but allof those individuals are internal to the company. now, the type of accounting that is mainlyconcerned with internal users is managerial accounting. have you heard of managerial accounting?does anybody already know they're going to have to take managerial accounting? a lotof people will take financial accounting which is mainly concerned of the external users,and then they eventually take managerial accounting

which is the internal users. alright, let'sgo to the next slide just like there are rules of basketball that must be followed thereare rules of accounting that must be followed, and this will help insure that the informationremains relevant, reliable, and comparable, and we know it has to be those three thingsfor it to be useful. so, there are what's called generally accepted accounting principlessometimes we abbreviate that gaap (g double a p) these are the rules that have been putinto place that we have to follow for accounting. we'll start learning some of those. now, whosets those rules? those are set by what is called the financial accounting standard board,and we abbreviate that sometimes the fasb. this is the private group that sets the rulesof accounting. now, they take input from a

lot of different groups such as the sec thesecurity and exchange commission, have you heard of that group? they're the governmentbody that has the reporting rules for companies that trade stock, and issue stock to the publicthey certainly have input to the fasb on what gaap is. there's also something called theinternational accounting standards board, and they deal with international standardsok, so they certainly have input to the fasb as well. now, one thing about internationalstandards is that we're becoming a much smaller world in some ways, aren't we? have any ofyou going to these classes, have any of you ever skyped, do you know what skyping is?have you ever skyped to somebody overseas? have you ever purchased something over theinternet overseas? if i were to ask this in

an accounting class twenty years ago i probablywould get responses like this - first of all you would say: what is skype, second thingyou wouldn't think about buying something from somebody in germany for example, becauseit's just not possible. but with technology, with communications we're becoming a smallerworld aren't we? it's always interesting with these accounting lectures being on youtubei'll get emails from people in poland, saudi arabia, london, all over the world that somehowthey stumble upon these lectures, and for some reason they watch them. maybe they'retaking an accounting class and it kind of helps them, but it's kind of fun to hear fromthose if somebody out there is watching it shoot me an email i'd love to hear from thosepeople, but it's a small world isn't it? well,

because of that we have to start having someinternational standards, because companies are becoming global with operations not injust the united states, but other countries as well. so, you might hear of something calledifrs that stands for international financial reporting standards, and they identify thepreferred accounting for companies ok. we won't get too much in this, but i want youto be aware of it that ifrs is more and more concerned each year with how are we goingto make the accounting operations in london comparable with the ones in georgia ok. howare we going to do that, we want to try to find a common set of rules, and that's whatifrs is. ok, i want you to read about next now were into a different subject, and i wantyou to read about this in your books. the

business entity forms and this is on pageeleven and twelve in your textbook. now, i'm not going to go through every aspect of this,but i want to hit some high points, it's on page eleven and twelve in your textbook. andwhat i want to do is, and i going to double-check that make sure i gave you the right pages.yes i did ok eleven and twelve in your textbook. now, if you start a business one of the firstthings that you have to decide is, how do i want to set up my business? and there'sthree main ways you can set up that business. you can set it up as a sole proprietorship,as a partnership, or as a corporation ok those are the three main ways. now there is kind-ofdifferent sub-ways under each one of those, but for the purposes of this class we're goingto kind-of concentrate just on those three

ways. now, there is a nice chart in your booki'm not going to talk about every little row and column on here, but i want you to readabout this and to know this. let's highlight a few of those ok proprietorship versus apartnership versus a corporation ok. now let's come off the slides for a second, and it'sjake right? let's say you started a landscaping business jake you can set it up as a soleproprietorship where you are the only owner, and you don't incorporate anything you'rejust a sole proprietorship, right? or what you can do is let's say there are two owners,and it's jake and matt let's say there were going to be two owners, and you're not goingto incorporate but you're going to be a partnership you can set it up that way, or the other thingyou can do is incorporate now going back to

the previous slide looking back at it realquick. you might think sole proprietorship means one owner, partnership just a few, andcorporation means a lot of owners that slide kind-of indicates that, but that's not totallytrue, because going back to you jake even if you were the only owner you could incorporatewhat it means to incorporate is you set your business up as a separate legal entity, aseparate legal entity if you're a corporation. not so much a contractor, but like sprintis a separate legal entity but even your landscaping business you can be a separate legal entityand set that up completely separate from you as a human you as a person. as a matter offact if you die the corporation is still alive, right? or if you're a partnership you canincorporate so i don't want you to think corporation

always mean hundreds of hundreds of owners,because there's actually a lot of corporations with just one or two owners. a corporationmeans you have gone through the paperwork, and fees, and procedures to set it up as aseparate legal entity, does that make sense? ok going back to this slide no matter howyou set up your business you're going to be a separate business entity which means you'regoing to keep your business books separate from your personal books. you don't want tocomingle those records ok. jake you don't want to keep track of your landscaping businessin the same check book and records as you do in your personal life, or if you have morethan one business you want to keep those separate as far as record keeping. but only a corporationis a separate legal entity ok. now the nice

thing about a corporation is that a corporationhas what is called limited liability. a proprietorship and a partnership have unlimited liability.unlimited liability is a bummer it's a bad thing for example, let's say jake that youhave a landscaping business, and you are set up as a sole proprietorship and let's saythat you have a lawn mowing incident and you run over somebody and they die, tragic, lawnmowing incident well since you have unlimited liability proprietorship they can come andsue you, and take your personal assets your home, your savings that grandma left you allthat sort of stuff. if you're a partnership, and you're not incorporated and let's sayjake has a tragic lawn mowing incident right? well let's say jake didn't have any money,but matts loaded they could actually come

and take your assets you have unlimited liabilitythat's a bummer isn't it? he did it and they're taking my assets, right? unlimited liabilityis a bummer. you want to have limited liability that's why you might incorporate what thatwould mean is this is if you incorporate, and that situation happens they can come tryto take the assets of the business, but they can't take your personal assets. it's kindof a shield sometimes we call it a corporate shield, does that make sense? that's why oneperson might incorporate or two people might incorporate ok, so, unlimited liability badthing, limited liability good thing. the process of getting to be a corporation? well to bein this framework to be if you want limited liability you have to incorporate in someway which means that there's certain policies

that you have to follow, paperwork that youhave to fill out, fees you have to pay to the government, maybe records you have toprovide to the government. sole proprietorship is easy you really don't have to do much youknow you'll just be a sole proprietorship ok. ok unlimited life a proprietorship a partnershipthey have a limited life that means if you die the business is over, but a corporationhas a unlimited life. if you are an owner, or a shareholder of sprint for example thinkabout that if you die is sprint going to be going on they probably won't send you a cardor flowers or anything, will they? they keep going a corporation has a unlimited life,is the business taxed? well that's a bummer about being a corporation a great about acorporation is that it has limited liability

the bummer is that a corporation is taxed.now, let's explain this real quick let's say you are a sole proprietorship does that meanyou get to enjoy a tax free life, no. that just means that you get to fill out an informationaltax return and you pay your taxes at the personal level. same thing with a partnership the partnershipis not taxed, but a corporation is taxed. let me explain that in real elementary terms,sprint has a pile of money, then they have to pay taxes, and that pile of money is nowless right? then they pay dividends to their owners, or their shareholders do the individualshareholders and owners have to pay taxes again on those dividends. yes they do. that'scalled double taxation that's a bummer isn't it? it doesn't seem fair does it? corporationpays taxes, and then they distribute money

to their owners, and the owners have to paytaxes again that's the big bummer about being a corporation. do they have to pay like payrolltaxes? yes that's a great comment i'm not talking about payroll tax or sales tax i'mtalking about income tax ok? good question. is one owner allowed like i said yes you canhave a one owner corporation, proprietorship is just one owner, if you are a partnershipyou can't have one owner you have to have two or more. now, there is something calleda limited liability corporation an llc, have you ever heard of that? that's a great wayto start a business, because let's say the two of you start as a llc you would have theadvantages of limited liability that's good, and you also would not pay taxes at the businesslevel only at the personal level. the question

might be "why doesn't everybody be an llc,why doesn't sprint be an llc?" sprint would love to be an llc, but there are rules thatyou can only be such a certain size or less to be an llc once you have a certain amountof owners you have to incorporate basically. but if you were going to start a businessi would bet you that your lawyer would advise it to be an llc, but you'd have to talk tohim or her. i had a business i was an llc, because i wanted the limited liability, andi did not want to pay taxes at the business level cool. alright, we're going to talk abouta few more things that's really important. this is your new buddy the accounting equation,what is the accounting equation? the accounting equation is assets equal liabilities plusowners' equity ok. now i want you to remember

something here come off the slides real quick.when you first learn something you're going to have somebody like me who's going to teachyou something, and you're going to have to trust me a little bit right, like when i taughtmy son to play baseball when he was just a real little kid i told him how to hold a baseballbat right. now he doesn't know he's just got to trust me that that's the way you hold abaseball bat if i want to be mean i could show him so weird way now, he wouldn't knowwould he? now i'm not going to do that to you ok there are some things i'm going toteach you in chapter one, and throughout this whole course that you're not going to understandthe full implications of it, but i want you to memorize it. are you with me? trust me.and the implications will come into play as

the semester progresses, but going back tothe accounting equation for now i want you to memorize that the accounting equation isassets equals liabilities plus equity. are you with me? now, let's flesh that out a littlebit what are assets we've heard the term assets these are the resources you own or control,aren't they? such as, cash that's an asset that's a resource if you have vehicles, orsupplies, land, or equipment, or buildings, supplies those are assets right? those areassets that you own. a couple of these require a little more explanation such as accountsreceivable. jake let's go back to your business let's say you mow my lawn and you charge fiftydollars for a lawn mowing, and i just i'm going to pay you later i'll pay you next weekok and you say that's fine i trust you, you

would have a accountant receivable from methe customer, because you're going to receive cash in the future. does that make sense?that is an account receivable on your books ok. anybody here work at a bank by chance?no ok. well i have a car loan at bank of america they have a note receivable from dave kruga note is similar to a account receivable, but a note is little bit more formal. it'susually written down "hint notes receivable", and there usually interest involved, but anaccount receivable or a notes receivable is an asset. you're going to receive cash inthe future, does that make sense? it's usually dated have you ever had a loan, student loan,car loan, good for you keep living that way ok. when i did my car loan though for thoseof you who have car loans, or student loans

did you have to sign, and date a bunch ofstuff did they say an interest rate it was more formal than me just saying "hey you canjust pay me next week" you see what i'm saying we're not signing there's no interest that'san account receivable with a bank it's a note receivable, good question. alright what aboutliabilities, well unfortunately most of us know about liabilities, this debt this isthings we're going to have to pay in the future ok. going back to jake you have an accountreceivable for fifty dollars in your books from me well on my books i have an accountpayable to you right? that's a liability on my books. bank of america has a notes receivablefrom dave krug for the car loan, i have a note payable to bank of america ok. there'salso things like taxes payable going back

to the slide. taxes payable are taxes thati owe i'm going to have to payout cash for. wages payable or salaries payable anythingending in payable is i owe this person, company, or whatever i'm going to have to pay themin the future that's debt right. some of you have student loans payable. anybody here owna house, ok you have a mortgage payable right? so, those are liabilities ok. now, let's talkabout equity, what is equity? now most people understand what assets are, and most peopleunderstand what liabilities are generally speaking, but then they get to this equitything and they go "oh what's equity" we've heard about it before, but it's not quite,it's hard to get your arms around what equity is. i think the best way to learn about whatequity is, is to talk about equity increases,

and equity decreases but this is the owner'sinvestment in the company. so i want you to know this so as a matter of fact for you faceto facers we are going to have a quiz at the very beginning of the next period, and it'sgoing to be right at nine-o-clock so if you're late you'll miss it, but the quiz is goingto be number one what is the accounting equation, and that is assets equals liabilities plusowner's equity. the next question i'm going to ask you is how does owner's equity increase,and how does owner's equity decrease? so you folks at home even though you cannot takethis quiz i want you to act like it's a quiz, because i have found through teaching thisclass many times that this is a fundamental principle that i want to get into everyone'shead and i want to make everything easier

ok. so, know the accounting equation don'tjust abbreviate either assets equals liabilities plus owner's equity, and now let's talk abouthow owners' equity changes. how does owner's equity increase will there's two ways. thefirst way is investments of assets by the owner into the business, investments of assetsby the owner into the business. going back to jake and your business let's say that grandmadied and left you ten-thousand dollars in her will she gave it to you personally. andyou decide to take that ten-thousand dollars and you start your business with it well youare investing personal assets into the business that increase your owner's equity. let's sayyou own a truck and you decide to put into the business that's putting a different typeof asset into the business, and that increases

owner's equity. you with me so, putting assetsinto the business increases owner's equity. the second thing that increases owner's equityis revenue, what is revenue? you kind of know what revenue is right? when you said you weregoing to mow my lawn, and i'm going to give you fifty dollars later. that fifty dollarsis revenue, and you really don't have to wait until i pay you that's revenue as soon asyou're done mowing the lawn and will talk here in another lecture. if you go buy a twentydollar dvd at best buy after class today that's twenty dollars of revenue for best buy. ifyou pay fifteen dollars to get a haircut that's fifteen dollars of revenue to the barber correct,right? we'll talk about that we're going to kind-of ignore taxes for now, because thetaxes that really aren't that something you

have to give the government, but ignoringtaxes if you pay fifteen dollars for a haircut that's fifteen dollars of revenue for thebarber right? makes sense if you go buy a five dollar meal at mcdonalds that's fivedollars of revenue for mcdonalds. so, these are the two things that cause owner's equityto increase: investments of assets by the owner into the business, and revenue. now,i'm telling you right now face to facers this is the quiz this is the question these arethe answers. sometimes people will give me the answers that sound right, but there notsuch as they'll say "cash", well no cash doesn't always cause owner's equity to increase. ifi go get a fifty-thousand dollar loan in cash, but does that cause owner's equity increase?no. the questions and the answers to the quiz

are on this slide here the two things thatcause owner's equity increase investments of assets by the owner into the business,and revenue. it's just that simple i know you don't understand the full implicationsof this, but trust me and just memorize this for now. now, let's talk about two thingsabout how owners' equity decrease, and this is going to be the flip side of what we justdiscussed. if putting assets increasing taking assets out of the business decreases equitythat makes sense doesn't it? why might you take assets out of the business jake? welllet's say you need some money to pay your apartment rent or to buy groceries that'swhy you have a business right? so you can take money every now and support yourself.well that's fine that's expected when you

take those assets out of the business thatdecreases your owner's equity. make sense? that's expected that's normal assets increases,assets out decreases. marlin? how would that work for like a corporation like somebodytaking assets out. what that would be is how do assets leave a corporation and go to theowners through dividends primarily ok. so it's a little different when you think jakeslandscaping business versus sprint. but the principals still apply good question. alrightnow if revenues cause owners' equity to increase what do you think causes owner's equity todecrease? expenses you're exactly right you have salary expense you have advertising expenseyou have gasoline expense expenses cause owner's equity to decrease. so i told what's on thequiz didn't i? if you like find a chair for

your salon would that be an expense but onceit's in your salon it would be a revenue. no great question, and the there's a lot ofdifferent concepts wrapped in that question and it's a great question and i'm not goingto be able to fully answer it today, because it's going to involve some principles i'lltalk about the next couple lectures. first of all if you buy a huge asset we don't expenseit's an asset and that's not an expense now we'll depreciate over time we'll expense itslowly and that's when it causes owner's equity to decrease. and then there was second partof that question if forgot already oh does it become revenue? no. no revenue is whenyou provide product or services to customers and you can book that as revenue and you willeventually receive payment ok. the chair's

never going to pay you for anything it's nota customer does that make sense? great questions. so there's the whole quiz what's' the accountingequation assets equals liabilities plus owner's equity what causes owners' equity to increasegoing back to that slide investment of assets by the owner into the business and revenue.what causes owner's equity to decrease withdraws of assets by the owner out of the business,and expenses. would it still be a positive thing for equity if it was a non profit company?yes now i want you and it's a great question you're asking about not for profits and youasked about a corporation marlin. these are excellent questions; however, i'm not goingto fully be able to answer them it's kind of like baseball its like if i was teachingmy son how to play baseball and i would teach

him when you're on first base and they hitthe ball you run. if he's four or five years old i'm just trying to get the concepts thatrun this way around the bases run from first base to second base not first to third notto mom in the stands, but from first to second now for those of us who know baseball youknow that there's a lot of other implications right on a fly ball you go half way rightthere's a lot of different things but i'm not going try to teach my four or five yearold all those implications just yet. corporations not for profits they use these same principles,but in a slightly different way i don't want to go down that road just yet it will kindof confuse us. as a matter of fact the majority of our class financial accounting that youtake this semester is going to be in regards

to a sole proprietorship we'll talk a littlebit about corporations we'll talk a little bit about not for profit trust me these conceptsapply but it's a little different. so i think it will be easier to try think about jakeand his landscaping business as you learn these fundamental principle make sense? walkbefore you run. what i want to do right now is we have a few minutes and i want to doin your book and i'll do this often. is we'll work on something in class for a few minutes.for you folks at home there going to play this snazzy jazzy jccc music and i want youto do these problems as well and i want you to come back and go over the answers, andif it takes you more time folks at home just pause it, and play when we go over the answerswhen you're ready, but what i want to do is

go over quick study one-three in your bookthat's on page thirty one and exercise one-three ok let's just do those right now quick studyone-three on page thirty-one and exercise one-three on the bottom of page thirty two.i'll give you some time to do that for you folks here you can work together if you wantyou can share your answers, but i'll give you about four minutes and then will go throughthe answers. so let's do that right now. (music 44:20-48:15) ok i wanted to give you a littlebit more time face to facers, but were running out of time here so if you at home are notdone just pause it start it when you are done. but let's go through the answers real quicknow first of all notice in your text book there are quick studies, there are exercises,and further on there's problems. so when i

give you homework if i say to do quick studyone point two don't do exercise one point two don't do problem one point two do quickstudy so you can't just concentrate on the numbers you have to know if it's a quick studyan exercise or a problem. quick study one-three on the top of page thirty one external orinternal a lender is what external, what about the controller internal, shareholders areexternal, the sales staff is internal, the fbi and the irs are external, and so are consumergroups consumer groups are external, consumer groups are external, brokers like stock brokersexternal, suppliers are external, customers are external, the managers of a business internal,business press like the kansas city star or the kansas city business journal are external,and the district attorney is external, any

questions there? alright. let's jump overreal quick and go over exercise one-three what type of accounting is most involved?review of reports for sec compliance is mainly financial accounting, because it's for externalusers who might be considering in investing in the company or something like that. sonumber one is b financial accounting on exercise one-three on the bottom of page thirty-two.planning transactions to minimize taxes would be tax accounting ok we didn't talk aboutthat but there's tax accounting as well so number two is tax accounting. number threeinvestigating violations of tax laws is also tax accounting c. preparing external financialstatements what's that? b, financial accounting. what about budgeting? that's more of an internalthing right? so that would be managerial accounting

number five is a. number six cost accountingthat's more of an internal situation as well that's also internal that's also managerialaccounting so six is a. number seven external auditing is financial accounting like we discussedearlier so number seven is b. number eight is internal auditing that is managerial accountingso number eight is a, any questions on that? ok i know we went through that a little quicksorry about that. last thing i'm going to do is give you your homework please do thisfor next period you who've taken accounting know is the way you learn this stuff is bydoing it. so the only homework i'm giving you and once again keep track if this is aquick study or an exercise, and eventually well have problems, but i want you to do quickstudy one point eight, quick study one point

seven, and exercise one point seven. i knowthis was a little bit of a longer lecture, but i wanted to get some stuff in thanks alot and we'll see you next time bye-bye.