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 forms can be used to record a payment made at the time of purchase by check?

General Journal

Purchases Journal

Cash Payments Journal

Sales Journal

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Verified step by step guidance

Understand the purpose of each journal: A General Journal is used for recording non-routine transactions, a Purchases Journal is used for credit purchases, a Sales Journal is used for credit sales, and a Cash Payments Journal is used for recording payments made in cash or by check.

Identify the nature of the transaction: The problem specifies a payment made at the time of purchase by check, which involves cash outflow.

Match the transaction type to the appropriate journal: Payments made by check are considered cash transactions and are recorded in the Cash Payments Journal.

Recognize why other journals are not suitable: The Purchases Journal is for credit purchases, the Sales Journal is for credit sales, and the General Journal is for non-routine transactions, none of which apply to this scenario.

Conclude that the Cash Payments Journal is the correct form to record this type of transaction, as it is specifically designed for cash or check payments.