Recording Business Transactions in Accounting
Learn more about debit, credit, and the use of journals and ledgers to record business transactions in accounting.
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CertificationView course modules
This course begins by discussing the account and rules of debit and credit. You will learn that the debit account is on the left, the credit account is on the right, and that debit must always equal to the credit. You will study the steps in recording transactions including how to analyze, journalize, and post a transaction. This course will also teach you how to prepare a trial balance and financial statement as well as post adjustments, close entries, and close a trial balance.
You will then look into the accounting process in operation and learn how to analyze and use the financial results. This course will teach you that the financial result is the difference between earnings before interest and taxes and earnings before taxes and is determined by the earning or the loss which results from financial affairs. You will study the use of a ledger account which is a separate record within the general ledger assigned to a specific asset, liability, equity item, revenue type, or expense type.
The ability to accurately record business transactions is of vital importance for accounting professionals in any business or organisation. Upon the completion of this course, you will be able to use the account as the basic classifying and storage unit for accounting information, express the effects of business transactions in terms of debits and credits to different types of accounts, post journal entries to the accounts in the ledger, and more. Sign up for this course, and start enhancing your accounting skills today.
Module 1: Recording Business Transactions
The Account and Rules of Debit and Credit
Recording the Transactions
The Accounting Cycle
The Accounting Process in Operation
Analyzing and using the Financial Results
The Use of Ledger Accounts
Module 2: Recording Business Transactions Assessment
Having studied this course learners will be able to:
- Use the account as the basic classifying and storage unit for accounting information;
- Express the effects of business transactions in terms of debits and credits to different types of accounts;
- List the steps in the accounting cycle;
- Record the effects of business transactions in a journal;
- Post journal entries to the accounts in the ledger;
- Prepare a trial balance to test the equality of debits and credits in the journalizing and posting process;
- Analyze and use the financial results - horizontal and vertical analyses.
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Business transactions are financial events with third parties which get recorded in a company’s accounting systems. Generally these kinds of transactions are measurable in money, and some of them include sales, buying insurance, staff salaries and reimbursements. This free online business transactions course will show you how to record these events in your accounting system so as to have a continuous and accurate understanding of your company’s financial health.
The best free online business transactions courses available on Alison include:
Each of the online business transactions courses on Alison are free, as are all of Alison's online courses. Alison's learners do not have to pay anything to take these courses unless they want a digital or physical copy of the course certificate.