1. Discuss the steps in processing business transactions.
2. What kinds of transactions can be recorded in a general journal?
3. Are debits or credits typically listed first in general journal entries? Are the debits or the credits indented?
4. If assets are valuable resources and asset accounts have debit balances, why do expense accounts also have debit balances?
5. Should a transaction be recorded first in a journal or the ledger? Why?
6. Why does the recordkeeper prepare trial balance?
7. If an incorrect amount is journalized and posted to the accounts, how should the error be corrected?
8. Identify the four financial statements of a business.
9. What information is reported in an income statement?