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

In the context of preparing journal entries, what does applying the double accounting underline format to selected cells in a spreadsheet typically indicate?

A subtotal that requires further calculation

A reference to a supporting document

An error in the journal entry that needs correction

The final total of debits and credits, confirming that they are equal

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Verified step by step guidance

Understand the purpose of the double accounting underline format: In financial accounting, the double underline is used to emphasize the final total in a calculation, often indicating that no further calculations are needed for that specific column or row.

Recognize its application in journal entries: When preparing journal entries, the double underline is applied to the final total of debits and credits to confirm that they are equal, ensuring the accounting equation is balanced.

Review the concept of debits and credits: Debits and credits are fundamental to double-entry accounting. Debits represent increases in assets or expenses, while credits represent increases in liabilities, equity, or revenue. The total debits must equal the total credits in every journal entry.

Understand the importance of balancing: Balancing debits and credits ensures the integrity of the financial records and prevents errors in the accounting process. The double underline visually confirms this balance.

Apply the double underline format appropriately: When preparing journal entries in a spreadsheet, apply the double underline to the final totals of the debit and credit columns after verifying that they are equal, signaling the completion of the entry.