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

When viewing a transaction list in accounting software, if item 1 is highlighted with a green box, what does this most likely indicate?

The transaction contains an error and needs correction.

The transaction is pending approval.

The transaction has been successfully posted to the ledger.

The transaction has been deleted.

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Verified step by step guidance

Step 1: Understand the context of the problem. In accounting software, transactions are often color-coded to indicate their status. A green box typically signifies a positive or completed action.

Step 2: Review the options provided in the problem. The options include: (1) the transaction contains an error, (2) the transaction is pending approval, (3) the transaction has been successfully posted to the ledger, and (4) the transaction has been deleted.

Step 3: Eliminate options that do not align with the typical meaning of a green box. For example, errors or pending approval are usually marked with colors like red or yellow, not green.

Step 4: Focus on the option that aligns with the positive connotation of a green box. A green box most likely indicates that the transaction has been successfully posted to the ledger, as this represents a completed and correct action.

Step 5: Confirm your understanding by considering the purpose of the ledger in accounting. Posting to the ledger is a critical step in recording transactions, and a green box would logically signify successful completion of this process.