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

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

When is a general journal page considered complete?

When all transactions for the period have been recorded and the page is totaled and ruled.

When the financial statements are finalized.

When all accounts have a zero balance.

When the trial balance has been prepared.

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Verified step by step guidance

Understand the purpose of a general journal: It is used to record all transactions in chronological order before they are posted to the ledger accounts.

Recognize the criteria for considering a general journal page complete: A page is complete when all transactions for the period have been recorded, the totals are calculated, and the page is ruled (a line is drawn to indicate the end of the entries).

Clarify why financial statements being finalized is not relevant: The general journal is completed before financial statements are prepared, as it serves as the basis for posting to the ledger and preparing the trial balance.

Explain why zero balances in accounts are not a requirement: Accounts may not have zero balances at the end of a period, as they reflect ongoing financial activity.

Highlight the relationship to the trial balance: The general journal must be completed before preparing the trial balance, as the trial balance is derived from the ledger accounts, which are updated using the journal entries.