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

The ____ is where a transaction can first be found in the accounting records.

balance sheet

journal

trial balance

ledger

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Verified step by step guidance

Understand the purpose of the question: It is asking where a transaction is first recorded in the accounting process. This requires knowledge of the accounting cycle.

Recall the accounting cycle: Transactions are first recorded in the journal, which is also known as the book of original entry. The journal captures the details of each transaction chronologically.

Differentiate the options provided: The balance sheet is a financial statement summarizing assets, liabilities, and equity at a specific point in time. The trial balance is a summary of all ledger accounts to check for errors. The ledger is where transactions are posted after being recorded in the journal.

Focus on the journal: Transactions are initially recorded in the journal using journal entries, which include the date, accounts affected, amounts, and a brief description.

Conclude that the journal is the correct answer: It is the first place where transactions are documented in the accounting records before being posted to the ledger.