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

1. Introduction to Accounting

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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 sequence correctly summarizes the accounting process according to the fundamental accounting equation?

Record in journals → Analyze transactions → Post to ledger → Prepare trial balance

Post to ledger → Analyze transactions → Prepare trial balance → Record in journals

Prepare trial balance → Post to ledger → Record in journals → Analyze transactions

Analyze transactions → Record in journals → Post to ledger → Prepare trial balance

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the fundamental accounting equation, which is Assets = Liabilities + Equity. This equation serves as the foundation for all accounting processes.

Step 2: Begin the accounting process by analyzing transactions. This involves identifying the financial impact of each transaction on the fundamental accounting equation and determining which accounts are affected.

Step 3: Record the analyzed transactions in journals. Journals are chronological records of transactions, where each entry includes details such as date, accounts affected, and amounts debited or credited.

Step 4: Post the journal entries to the ledger. The ledger is a collection of accounts where each account reflects its cumulative balance based on the journal entries posted.

Step 5: Prepare a trial balance. This step involves listing all ledger accounts and their balances to ensure that total debits equal total credits, verifying the accuracy of the accounting records.