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

A transaction is initially recorded in the journal, and then subsequently posted to the general _____.

balance sheet

income statement

ledger

trial balance

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Verified step by step guidance

Understand the purpose of the journal: The journal is the book of original entry where transactions are recorded chronologically as they occur.

Learn the role of the general ledger: The general ledger is the book of accounts where transactions are categorized and summarized after being recorded in the journal.

Recognize the flow of accounting information: Transactions are first recorded in the journal and then posted to the general ledger to organize them by account.

Differentiate the general ledger from other financial statements: The general ledger is not a financial statement like the balance sheet, income statement, or trial balance; it is a detailed record of all accounts.

Understand the posting process: Posting involves transferring the information from the journal entries to the respective accounts in the general ledger, ensuring accurate categorization and preparation for financial reporting.