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1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

Which of the following transactions will reduce your checking account balance immediately?

Withdrawing cash from an ATM

Depositing a customer’s check

Receiving a bank loan

Writing a check to pay a supplier

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Verified step by step guidance

Understand the nature of each transaction and its impact on the checking account balance.

Analyze the transaction 'Withdrawing cash from an ATM': This action directly reduces the checking account balance because cash is taken out immediately.

Evaluate the transaction 'Depositing a customer’s check': This does not reduce the checking account balance immediately. Instead, it increases the balance once the check clears, which may take time.

Consider the transaction 'Receiving a bank loan': This increases the checking account balance as funds are deposited into the account, not reducing it.

Examine the transaction 'Writing a check to pay a supplier': While this action authorizes payment, the checking account balance is not reduced immediately until the check is processed by the bank.