ec ACCOUNTING Chapter 2 QulzWeek 1 6 Which of the following

ec ACCOUNTING Chapter 2 Qulz-Week 1 6 Which of the following is not part of measuring external transactions? O Recording transactions. O Using source documents to analyze accounts affected O Analyzing transactions for their effect on the accounting equation O Making payments on all amounts owed

Solution

Answer is option D

Making payments on all amounts owed.

The sequential steps involved measuring external transactions are as follows:

Step 1 - Use source documents to identify accounts affected by an external transaction.

Step 2 - Analyze the impact of the transaction on the accounting equation.

Step 3- Assess whether the transaction results in a debit or credit to account balances.

Step 4 - Record the transaction in a journal using debits and credits.

Step 5 - Post the transaction to the general ledger.

Step 6- prepare a trial balance