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 tool is primarily used to record business transactions by applying the rules of debits and credits?

Bank Reconciliation Statement

Balance Sheet

General Journal

Trial Balance

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Verified step by step guidance

Understand the purpose of the General Journal: It is the primary tool used to record business transactions in chronological order, applying the rules of debits and credits.

Learn the rules of debits and credits: Debits increase asset and expense accounts, while credits increase liability, equity, and revenue accounts.

Recognize the structure of a General Journal entry: Each transaction is recorded with a date, account names, debit amounts, and credit amounts, ensuring the total debits equal total credits.

Differentiate the General Journal from other tools: The Bank Reconciliation Statement reconciles bank records with company records, the Balance Sheet summarizes financial position, and the Trial Balance checks the accuracy of ledger accounts.

Understand the importance of the General Journal: It serves as the foundation for transferring transactions to the ledger accounts, ensuring accurate financial reporting.