Which of the Following Is the Order of Steps to Journalize

question 151

Multiple Choice

Which of the following is the order of steps to journalize an entry?

• A)Identify each account affected → Determine increase or decrease in each account → Record the transaction
• B)Identify each account affected → Record the transaction → Determine increase or decrease in each account
• C)Record the transaction → Identify each account affected → Determine increase or decrease in each account
• D)Determine increase or decrease in each account → Identify each account affected → Record the transaction

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Definitions:

IFRS

International Financial Reporting Standards, a set of global accounting standards for financial reporting.

GAAP

A set of widely followed rules and standards in financial reporting, termed Generally Accepted Accounting Principles.

Factoring Transaction

A financial arrangement where a business sells its accounts receivable to a third party at a discount to raise immediate capital.

Sales Returns

Transactions where customers return previously purchased merchandise for a refund or credit.