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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 is NOT a step in the process of measuring external transactions in financial accounting?

Recording the transaction in the journal

Analyzing the impact of the transaction on the accounting equation

Preparing the financial statements before recording transactions

Identifying the accounts affected by the transaction

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Verified step by step guidance

Understand the process of measuring external transactions in financial accounting, which typically involves several sequential steps to ensure accurate recording and reporting.

Step 1: Analyze the impact of the transaction on the accounting equation. This involves determining how the transaction affects assets, liabilities, and equity.

Step 2: Identify the accounts affected by the transaction. This requires pinpointing specific accounts (e.g., Cash, Accounts Receivable, Revenue) that are impacted.

Step 3: Record the transaction in the journal. This step involves creating a journal entry that reflects the transaction using debits and credits.

Recognize that preparing financial statements before recording transactions is NOT part of the standard process, as financial statements are prepared after transactions are recorded and summarized.