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

Which of the following presents the first three steps in the accounting cycle in the correct order?

Prepare financial statements, analyze transactions, journalize transactions

Post to ledger accounts, analyze transactions, journalize transactions

Journalize transactions, prepare trial balance, post to ledger accounts

Analyze transactions, journalize transactions, post to ledger accounts

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the accounting cycle, which is the process of recording and processing all financial transactions of a company. It typically begins with analyzing transactions and ends with preparing financial statements.

Step 2: Analyze transactions by reviewing source documents (e.g., invoices, receipts, contracts) to determine the nature of the transaction and its impact on the accounting equation (Assets = Liabilities + Equity).

Step 3: Journalize transactions by recording them in the journal using the double-entry accounting system. Each transaction is recorded as a debit and a credit in the appropriate accounts.

Step 4: Post the journalized transactions to the ledger accounts. This involves transferring the debit and credit amounts from the journal to the respective accounts in the general ledger.

Step 5: Recognize that these steps (Analyze transactions, Journalize transactions, Post to ledger accounts) are the first three steps in the accounting cycle and are foundational for accurate financial reporting.