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 is the correct sequence of steps for preparing a check stub in the accounting process?

Update the balance, enter the date, write the check number, record the payee, and enter the amount.

Record the payee, update the balance, write the check number, enter the date, and enter the amount.

Write the check number, enter the amount, record the payee, update the balance, and enter the date.

Enter the date, write the check number, record the payee, enter the amount, and update the balance.

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Verified step by step guidance

Step 1: Understand the purpose of a check stub. A check stub is used to record details of a check transaction, including the date, check number, payee, amount, and updated balance. It serves as a record for both the payer and the accounting process.

Step 2: Begin by entering the date. The date is crucial as it indicates when the transaction occurred and helps maintain chronological order in the accounting records.

Step 3: Write the check number. The check number is a unique identifier for the check and is essential for tracking and reconciling transactions.

Step 4: Record the payee. The payee is the entity or individual receiving the payment. This information ensures clarity on who the payment was made to.

Step 5: Enter the amount and update the balance. The amount represents the payment made, and updating the balance reflects the new account balance after the transaction.