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

Transaction data gathered at the point of sale is known as:

General ledger

Source documents

Trial balance

Adjusting entries

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Verified step by step guidance

Understand the concept of transaction data gathered at the point of sale. This refers to the initial record of a financial transaction, typically created when a sale occurs.

Learn about source documents. These are original records that provide evidence of a transaction, such as receipts, invoices, or sales slips. They are crucial for recording transactions in the accounting system.

Differentiate source documents from other accounting terms like general ledger, trial balance, and adjusting entries. The general ledger is a collection of accounts summarizing all transactions, the trial balance is a summary of balances in the ledger, and adjusting entries are made to update accounts before preparing financial statements.

Recognize that source documents are the starting point for recording transactions in the accounting process. They serve as the basis for journal entries, which are later posted to the general ledger.

Conclude that transaction data gathered at the point of sale is classified as source documents because they provide the initial evidence of the transaction and are essential for accurate financial reporting.