Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

Which of the following forms of business organizations exists as a legal entity separate from its owners?

Partnership

Joint venture

Sole proprietorship

Corporation

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Understand the concept of a legal entity: A legal entity is an organization that has legal rights and responsibilities, such as entering into contracts, owning property, and being liable for debts, separate from its owners.

Review the characteristics of each business organization: Partnerships, joint ventures, and sole proprietorships do not exist as separate legal entities from their owners. Instead, the owners are personally liable for the business's obligations.

Focus on the corporation: A corporation is a distinct legal entity that is separate from its owners (shareholders). It can own assets, incur liabilities, and enter into contracts independently of its owners.

Recognize the implications of being a separate legal entity: Corporations provide limited liability protection to their owners, meaning the shareholders are not personally liable for the corporation's debts or legal obligations beyond their investment in the company.

Conclude that the correct answer is 'Corporation' because it is the only form of business organization listed that exists as a legal entity separate from its owners.