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 best describes a general ledger?

A document used to authorize payments to suppliers.

A list of all journal entries made during the accounting period.

A record that contains all accounts and their balances used by a company.

A summary of cash receipts and cash payments during a period.

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Verified step by step guidance

Step 1: Understand the concept of a general ledger. A general ledger is a complete record of all financial transactions of a company, organized by accounts. It includes all accounts and their balances, such as assets, liabilities, equity, revenues, and expenses.

Step 2: Analyze the options provided in the question. Each option describes a different accounting document or record. Compare these descriptions to the definition of a general ledger.

Step 3: Eliminate incorrect options. For example, 'A document used to authorize payments to suppliers' refers to payment authorization, not a general ledger. Similarly, 'A list of all journal entries made during the accounting period' refers to a journal, not a ledger. Lastly, 'A summary of cash receipts and cash payments during a period' describes a cash flow statement, not a general ledger.

Step 4: Identify the correct option. The correct description of a general ledger is 'A record that contains all accounts and their balances used by a company.' This matches the definition of a general ledger.

Step 5: Reinforce understanding by noting that the general ledger serves as the foundation for preparing financial statements, as it provides a comprehensive view of all accounts and their balances.