The first step in analyzing a transaction is
A) to decide if the accounts are increasing or decreasing.
B) to decide to which categories the accounts belong.
C) to decide where the amounts belong.
D) to decide which accounts are affected.

Question

Quizplus · Accepted Answer

The first step in analyzing a transaction is to identify which accounts are affected by the transaction. This involves identifying which accounts are being increased or decreased by the transaction. Once the accounts have been identified, the next steps can be taken, such as determining which categories the accounts belong to and where the amounts should be recorded.

The First Step in Analyzing a Transaction Is