Transaction Analysis: Fill In the Blanks

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. John starts business with $100,000 in cash. John's capital account will be .

2. John purchases supplies for $500 in cash. The supplies account will be .

3. John purchases merchandise for $5,000 on account. The account will be credited.

4. Merchandise are sold to a customer on account. The sales account will be .

5. $4,800 in cash is paid to a creditor and a cash discount of $200 is received. The accounts payable account will be debited by .

6. $800 in cash is paid to a worker as their monthly salary. The account to be debited is .

7. Supplies costing $100 are used during the month. The account will be debited and the supplies account will be credited.

8. Accounts in which transactions relating to individuals or organizations are recorded are known as .

9. The account is debited when owner of the business withdraws cash or another asset for their personal use.

10. Classification of accounts as real, nominal, and personal accounts is known as the .

11. Classification of accounts as assets, liabilities, capital, revenues, and expenses is known as the .

12. accounts are temporary accounts and are closed at the end of the accounting period.

13. A process that involves finding the names and nature of accounts in a transaction and applying the rules of debit and credit on those accounts is known as .

14. When revenue/income is earned, its account is .

15. are also known as balance sheet accounts.

16. When an expense is incurred, its account is .

17. An increase in liability is .

18. An increase in assets is .

19. A decrease in liability is .

20. A decrease in assets is .

21. Under the double-entry system of bookkeeping, every transaction has aspects.

22. Every debit has a corresponding .

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Frequently Asked Questions

What is Transaction Analysis accounting?

Transaction Analysis accounting, also known as business analysis accounting, is the process of analyzing a company’s financial transactions to understand how the company is performing financially.

How can Transaction Analysis accounting help improve Cash Flow?

Some of the benefits of using Transaction Analysis accounting include improved decision-making ability, understanding how a company is performing financially, seeing where money is being spent and earned, easier to identify potential problems and solutions, improve Cash Flow.

How can Transaction Analysis accounting help improve Cash Flow?

How can Transaction Analysis accounting help improve Cash Flow?

What are the potential problems that can be identified through Transaction Analysis accounting?

Some of the potential problems that can be identified through Transaction Analysis accounting include incorrectly recording financial transactions, not understanding how a business works financially, failing to track financial trends, not budgeting properly, making poor financial decisions.

What are the kinds of transactions?

There are three types of transactions: complementary, crossed and ulterior‐complementary.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

One thought on "Transaction Analysis: Fill In the Blanks"

  1. 1- John starts business with $100,000 cash. The John’s capital account will be credited by 100,000.
    2- John purchases supplies for $500 cash. The supplies account will be debited.
    3- John purchases merchandise for $5,000 on account. The accounts payable account will be credited.
    4- Merchandise are sold to a customer on account. The sales account will be credited.
    5- $4,800 cash is paid to a creditor and a cash discount of $200 is received from him. The accounts payable will be debited by $5,000.
    6- $800 cash is paid to a worker as his monthly salary. The account to be debited is salary.
    7- Supplies costing $100 are used during the month. Supplies expense account will be debited and supplies account will be credited.
    8- Accounts in which transactions relating to individuals or organizations are recorded are known as personal accounts.
    9- $800 cash is paid to a worker as his monthly salary. The account to be debited is salary.
    10- Classification of accounts as real, nominal and personal accounts is known as traditional/British classification
    11- Classification of accounts as assets, liabilities, capital, revenues, and expenses is known as modern/American classification.
    12- Nominal accounts are temporary accounts and are closed at the end of the accounting period.
    13- A process that involves finding the names and nature of accounts in a transaction and applying the rules of debit and credit on those accounts is known as analysis of transaction.
    14- When revenue/income is earned, its account is credited
    15- Real accounts are also known as balance sheet accounts.
    16- When an expense is incurred. Its account is debited.
    17- An increase in liability is credited
    18- An increase in asset is debited.
    19- A decrease in liability is debited.
    20- A decrease in asset is credited.
    21- Under double entry system of book-keeping, every transaction has two aspects.
    22- Every debit has a credit.

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