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

Which of the following fields are typically found in the 'Reclassify Transactions' screen when preparing journal entries involving debits and credits?

Customer, Quantity, and Unit Price

Vendor, Invoice Number, and Payment Terms

Account, Class, and Location

Tax Rate, Shipping Method, and Discount

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Verified step by step guidance

Understand the purpose of the 'Reclassify Transactions' screen: This screen is used to adjust or correct journal entries, ensuring that debits and credits are properly classified in the accounting system.

Identify the fields relevant to journal entries: Journal entries typically involve accounts (e.g., revenue, expenses, assets), classes (used for tracking transactions by category or department), and locations (used for tracking transactions by physical or operational location).

Eliminate irrelevant fields: Fields such as Customer, Quantity, Unit Price, Vendor, Invoice Number, Payment Terms, Tax Rate, Shipping Method, and Discount are not directly related to the classification of debits and credits in journal entries.

Focus on the correct fields: The correct fields—Account, Class, and Location—are essential for properly categorizing and tracking transactions in the accounting system.

Apply this understanding when preparing journal entries: Ensure that each transaction is assigned to the appropriate account, class, and location to maintain accurate financial records.