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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

The process of transferring information from the journal to the ledger is called:

Closing

Journalizing

Reconciling

Posting

Previous problemNext problem

Verified step by step guidance

Understand the concept of 'Posting': Posting is the process of transferring information from the journal (a chronological record of transactions) to the ledger (a categorized record of accounts). This step ensures that each transaction is properly recorded in the respective account in the ledger.

Review the purpose of the journal: The journal is used to record transactions as they occur, including details such as dates, amounts, and accounts involved. It serves as the initial point of entry for financial data.

Examine the role of the ledger: The ledger organizes financial data by account, allowing for a clear view of the balances and activity within each account. It is essential for preparing financial statements.

Understand the sequence of accounting processes: Posting occurs after journalizing (recording transactions in the journal) and before preparing trial balances or financial statements. It is a critical step in the accounting cycle.

Differentiate posting from other terms: Closing refers to the process of transferring temporary account balances to permanent accounts at the end of an accounting period. Journalizing is the act of recording transactions in the journal. Reconciling involves comparing records to ensure accuracy, typically between the ledger and external statements.