Table of contents

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

Accounting Flow Intuition: BASE Formula

Financial Accounting

2. Transaction Analysis

Accounting Flow Intuition: BASE Formula

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Multiple Choice

Some of the steps in the accounting cycle are listed below. Place them in the correct order of use:1. Prepare adjusting entries2. Post to the ledger3. Prepare trial balance4. Journalize transactionsWhich of the following sequences correctly orders these steps?

4, 2, 3, 1

4, 2, 1, 3

2, 4, 1, 3

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Verified step by step guidance

Step 1: Understand the accounting cycle, which is the process of recording and processing all financial transactions of a company. It typically includes steps such as journalizing transactions, posting to the ledger, preparing a trial balance, and making adjusting entries.

Step 2: Begin by journalizing transactions. This involves recording all financial transactions in the journal in chronological order. Each transaction is recorded as a debit and credit entry based on the double-entry accounting system.

Step 3: Post the journalized transactions to the ledger. The ledger is a collection of accounts where the debits and credits from the journal are transferred to their respective accounts, providing a detailed view of each account's activity.

Step 4: Prepare a trial balance. This step involves listing all ledger accounts and their balances to ensure that total debits equal total credits. The trial balance helps identify any errors in the posting process.

Step 5: Prepare adjusting entries. Adjusting entries are made at the end of the accounting period to account for accrued revenues, accrued expenses, prepaid expenses, and other adjustments necessary to reflect the true financial position of the company.