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

A record of the increases and decreases in a specific account is a(n):

journal entry

ledger account

trial balance

balance sheet

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Verified step by step guidance

Understand the concept of an account: In Financial Accounting, an account is a record that tracks increases and decreases in specific financial categories, such as assets, liabilities, equity, revenue, and expenses.

Learn the purpose of a ledger account: A ledger account is a detailed record of all transactions affecting a specific account, showing both increases (debits or credits) and decreases over time.

Differentiate between the options: A journal entry is the initial recording of a transaction, a trial balance is a summary of all ledger accounts to check for errors, and a balance sheet is a financial statement summarizing assets, liabilities, and equity at a specific point in time.

Recognize that the ledger account is the correct answer: It is the tool used to track increases and decreases in a specific account, providing detailed transaction history.

Apply this understanding to similar problems: Whenever asked about tracking increases and decreases in an account, remember that the ledger account is the primary record used for this purpose.