Transaction Analysis Q&A

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 26, 2023

Test your knowledge of transaction analysis by answering the 10 short questions given below.

We strongly recommend attempting to answer each question yourself before revealing the answers.

If you find any of these questions challenging, check out our article on transaction analysis to learn more and fill the gaps in your knowledge.

1. What are the two main approaches for classifying accounts?

2. What types of accounts exist under the traditional classification (or British approach)?

3. What are real accounts?

4. What are nominal accounts?

5. What are personal accounts?

6. What types of accounts exist under the accounting equation approach (also known as the modern or the American approach)?

7. What does it mean to debit or credit an account?

8. What does the analysis of business transactions mean?

9. Mr. Jones invests $50,000 in cash in his business. How would you analyze this transaction? For example, what accounts are involved in the transaction?

10. Mrs. Riva pays $950 in cash to a creditor and receives a cash discount amounting to $50. How many accounts are involved in this transaction?

You can also check:

Transaction Analysis Q&A FAQs

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 or view his author profiles on Amazon, Nasdaq and Forbes.