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

The recording of business transactions is a basic part of financial reporting and is referred to as:

Reconciling

Budgeting

Auditing

Journalizing

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Verified step by step guidance

Understand the concept of journalizing: Journalizing is the process of recording business transactions in the accounting journal, which is the first step in the accounting cycle. It involves documenting the details of transactions in chronological order.

Recognize the importance of journalizing: This step ensures that all financial transactions are accurately recorded, providing a foundation for preparing financial statements and maintaining the integrity of financial reporting.

Differentiate journalizing from other accounting terms: Reconciling involves comparing records to ensure accuracy, budgeting refers to planning financial resources, and auditing is the examination of financial records. Journalizing specifically refers to the act of recording transactions.

Learn the format of a journal entry: A journal entry typically includes the date of the transaction, accounts affected, amounts debited and credited, and a brief description of the transaction.

Understand how journalizing fits into the accounting cycle: Journalizing is followed by posting to the ledger, preparing a trial balance, and ultimately creating financial statements. It is a foundational step in the process.