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

Is it true that every business uses the same journal to record transactions?

Yes, all businesses are required to use a single, standardized journal.

Only corporations use different journals; sole proprietorships use the same journal.

No, businesses may use different types of journals depending on their needs.

Journals are not used in modern accounting systems.

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Verified step by step guidance

Understand the concept of a journal in accounting: A journal is a record where all business transactions are initially recorded in chronological order before being posted to the ledger accounts.

Recognize that businesses may use different types of journals based on their specific needs. Common types include the general journal, sales journal, purchases journal, cash receipts journal, and cash disbursements journal.

Note that the choice of journal depends on the nature and volume of transactions. For example, a business with frequent cash transactions might use a cash receipts journal, while another with many credit sales might use a sales journal.

Understand that modern accounting systems often use computerized software, which automates the recording process. However, the concept of journals still exists within these systems, even if they are not manually maintained.

Conclude that it is not true that all businesses use the same journal. Businesses tailor their accounting practices, including the use of journals, to suit their operational needs and transaction types.