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

What is the next step in the accounting cycle after analyzing a source document?

Prepare the trial balance

Close the temporary accounts

Post the transaction to the ledger

Record the transaction in the journal

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Verified step by step guidance

Step 1: Understand the accounting cycle, which is a series of steps followed to record and process financial transactions systematically.

Step 2: Recognize that analyzing a source document is the first step in the accounting cycle. This involves reviewing documents like invoices, receipts, or contracts to identify the details of a transaction.

Step 3: After analyzing the source document, the next step is to record the transaction in the journal. This is known as journalizing, where transactions are entered into the accounting journal in chronological order.

Step 4: Ensure that the journal entry includes the date, accounts affected, amounts, and a brief description of the transaction. This step is crucial for maintaining accurate financial records.

Step 5: After recording the transaction in the journal, the subsequent step would be posting the transaction to the ledger, but this comes after journalizing.