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

Which of the following transactions will increase the balance in a company's checking account?

Recording depreciation expense

Paying monthly rent by electronic transfer

Issuing a check to pay a supplier

Receiving a cash payment from a customer

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Verified step by step guidance

Step 1: Understand the nature of the company's checking account. A checking account is a type of bank account used for day-to-day transactions, and its balance increases when cash is deposited or received.

Step 2: Analyze each transaction provided in the problem to determine its impact on the checking account balance. For example, recording depreciation expense is a non-cash transaction and does not affect the checking account balance.

Step 3: Evaluate the transaction of paying monthly rent by electronic transfer. This action decreases the checking account balance because cash is being withdrawn to pay the rent.

Step 4: Consider the transaction of issuing a check to pay a supplier. Similar to the rent payment, this action also decreases the checking account balance as cash is being used to settle the supplier's invoice.

Step 5: Examine the transaction of receiving a cash payment from a customer. This action increases the checking account balance because cash is being deposited into the account, making it the correct answer.