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 process of initially recording a business transaction is called:

Posting

Reconciling

Journalizing

Trial balancing

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Verified step by step guidance

Understand the key terms in the problem: 'Posting,' 'Reconciling,' 'Journalizing,' and 'Trial balancing.' Each term refers to a specific step in the accounting cycle.

Recognize that 'Journalizing' is the process of initially recording a business transaction in the accounting records. This involves entering the transaction into the journal, also known as the book of original entry.

Differentiate 'Journalizing' from 'Posting,' which is the process of transferring the journalized entries to the ledger accounts. Posting comes after journalizing in the accounting cycle.

Clarify that 'Reconciling' refers to the process of ensuring that two sets of records (e.g., bank statements and company records) are in agreement. This is not related to the initial recording of transactions.

Understand that 'Trial balancing' is the process of listing all ledger accounts and their balances to ensure that total debits equal total credits. This step occurs later in the accounting cycle, not during the initial recording of transactions.