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

3. Accrual Accounting Concepts

Introduction to Adjusting Journal Entries and Prepaid Expenses

Financial Accounting

3. Accrual Accounting Concepts

Introduction to Adjusting Journal Entries and Prepaid Expenses

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Multiple Choice

What is the first step in the accounting cycle?

Analyzing transactions

Preparing adjusting journal entries

Preparing the trial balance

Posting to the ledger

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Verified step by step guidance

Understand the accounting cycle: The accounting cycle is a series of steps that businesses follow to record and report financial transactions systematically.

Identify the first step: The first step in the accounting cycle is 'Analyzing transactions.' This involves reviewing source documents such as invoices, receipts, and contracts to determine the nature of the transaction and its impact on the financial accounts.

Explain why analyzing transactions is the first step: Before any journal entries can be made, it is essential to understand the transaction details, classify them correctly, and determine which accounts will be affected.

Clarify the role of other options: Preparing adjusting journal entries, preparing the trial balance, and posting to the ledger are subsequent steps in the accounting cycle, but they cannot occur until transactions are analyzed and recorded.

Summarize the importance of analyzing transactions: This step ensures accuracy and completeness in the financial records, forming the foundation for all subsequent accounting processes.