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 statements regarding T-accounts is true?

The right side of a T-account represents debits and the left side represents credits.

T-accounts are only used for recording revenues and expenses.

The left side of a T-account represents debits and the right side represents credits.

T-accounts are used exclusively for preparing financial statements.

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Verified step by step guidance

Understand the structure of a T-account: A T-account is a visual representation of an account in the ledger, shaped like the letter 'T'. It has two sides: the left side is for debits, and the right side is for credits.

Clarify the concept of debits and credits: Debits and credits are fundamental to double-entry accounting. Debits increase asset and expense accounts, while credits increase liability, equity, and revenue accounts.

Evaluate the statement 'The right side of a T-account represents debits and the left side represents credits': This statement is incorrect because the left side represents debits, and the right side represents credits.

Assess the statement 'T-accounts are only used for recording revenues and expenses': This is incorrect because T-accounts are used for all types of accounts, including assets, liabilities, equity, revenues, and expenses.

Analyze the statement 'T-accounts are used exclusively for preparing financial statements': This is incorrect because T-accounts are primarily used for recording transactions and analyzing account balances, not exclusively for preparing financial statements.