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Using the Accounting Equation: Analyzing Business Transactions

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

The first step in the accounting cycle is called _____.

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1. Which of the following things do you need to know to be able to analyze a transaction?

2. The most important thing to remember when analyzing business transactions is that all debits and credits _____.

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About This Quiz & Worksheet

Having a look at the basis of the entire accounting process, this quiz and corresponding worksheet will help you gauge your knowledge of using the accounting equation. Topics you'll need to know to pass the quiz include understanding the first step in the accounting cycle as well as knowing how to analyze a transaction.

Quiz & Worksheet Goals

Use this printable worksheet and quiz to review:

  • First step in the accounting cycle
  • How to analyze a transaction
  • How debits must relate to credits
  • Entries on the left side of the account
  • Entries on the right side of the account

Skills Practiced

This worksheet and quiz will let you practice the following skills:

  • Interpreting information - verify you can read information regarding how to analyze a transaction and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about the first step in the accounting cycle
  • Reading comprehension - ensure that you draw the most important information from the related accounting equation lesson

Additional Learning

To learn more about how it all adds up, review the corresponding lesson on Using the Accounting Equation: Analyzing Business Transactions. This lesson will help you:

  • Understand what transaction analysis is
  • Identify where the step falls in the accounting cycle
  • Describe the components of the accounting equation
  • Explain how assets relate to liabilities
  • Appreciate how to factor in debits and credits in a business
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