What Is the Correct Order in Which the Steps for Analysing

question 5

Multiple Choice

What is the correct order in which the steps for analysing transactions are carried out?
I Determine which accounts are affected.
Ii Determine if the account type is increasing or decreasing.
Iii Apply the rules of debit and credit.
Iv Determine the account type.

• A) i, iv, ii, iii
• B) i, ii, iii, iv
• C) iv, ii, i, iii
• D) i, ii, iv, iii

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Definitions:

S Corporation

A type of corporation in the United States that meets specific Internal Revenue Code requirements, allowing profits and some losses to be passed directly to owners' personal income without being subject to corporate tax rates.