Multiple Choice
Expenses follow the same debit and credit rules as which of the following accounts?
26
views
2. Transaction Analysis
Journal Entries: Debits and Credits
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
The process of recording a transaction in the journal is called:
A
Balancing
B
Journalizing
C
Posting
D
Reconciling
Verified step by step guidance1
Understand the concept of journalizing: Journalizing is the process of recording financial transactions in the journal, which is the first step in the accounting cycle. It involves documenting the date, accounts affected, amounts, and a brief description of the transaction.
Differentiate between the given terms: Balancing refers to ensuring that the debit and credit sides of accounts are equal, Posting involves transferring journal entries to the ledger, and Reconciling is the process of ensuring that two sets of records (e.g., bank statements and company records) match.
Identify the correct term based on the definition provided: Since journalizing specifically refers to recording transactions in the journal, it is the correct answer.
Review the accounting cycle: Journalizing is the first step, followed by posting to the ledger, preparing a trial balance, and other steps leading to the preparation of financial statements.
Apply this knowledge to similar problems: Whenever asked about recording transactions in the journal, remember that the term journalizing is used.
2:35mWatch next
Master Journal Entries: Debits and Credits with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Journal Entries: Debits and Credits practice set
Problem sets built by lead tutorsExpert video explanations