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

As an accountant, where can you typically access and begin reclassifying transactions in an accounting system?

On the balance sheet report

In the general ledger module or journal entry screen

In the payroll processing section

Within the inventory management module

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Verified step by step guidance

Understand the concept of reclassifying transactions: Reclassifying transactions involves moving or adjusting entries to ensure they are recorded in the correct accounts. This is typically done to correct errors or improve the accuracy of financial reporting.

Identify the appropriate location for reclassification: Transactions are usually reclassified in the general ledger module or journal entry screen, as this is where all financial transactions are recorded and managed.

Recognize why the general ledger is used: The general ledger serves as the central repository for all accounting data, making it the ideal place to access and adjust transactions. It provides a detailed record of all accounts and their balances.

Eliminate incorrect options: The balance sheet report, payroll processing section, and inventory management module are not designed for reclassifying transactions. These areas serve other specific purposes, such as reporting financial positions, managing payroll, or tracking inventory.

Confirm the process: To reclassify transactions, accountants typically locate the relevant entry in the general ledger or journal entry screen, make the necessary adjustments, and ensure the changes are properly documented for audit and compliance purposes.