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 journal entries, which of the following best explains why a parse error might occur when multiplying price by quantity in an accounting software?

The transaction date is missing from the journal entry.

The journal entry does not have enough debits to match the credits.

The account titles are not listed in alphabetical order.

The data types for price or quantity are not numeric, causing the software to be unable to perform the multiplication.

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Verified step by step guidance

Understand the context of the problem: A parse error occurs when the software encounters an issue interpreting or processing data. In this case, the error arises during the multiplication of price and quantity in accounting software.

Identify the key requirement for multiplication: For the software to perform a multiplication operation, both 'price' and 'quantity' must be numeric data types (e.g., integers or decimals). Non-numeric data types, such as text or strings, cannot be multiplied mathematically.

Analyze the incorrect options: The transaction date being missing, mismatched debits and credits, or account titles not being in alphabetical order are unrelated to the multiplication operation. These issues might cause other errors but not a parse error during multiplication.

Focus on the correct explanation: A parse error occurs because the software cannot interpret non-numeric data types for mathematical operations. If either 'price' or 'quantity' is stored as text or another incompatible format, the multiplication fails.

Conclude the reasoning: To resolve this issue, ensure that both 'price' and 'quantity' are stored as numeric data types in the accounting software. This allows the software to successfully perform the multiplication operation without encountering a parse error.