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 type of business organization most fully protects its owners from personal liabilities and is taxed as a separate legal entity?

Limited liability partnership (LLP)

Sole proprietorship

Corporation

Partnership

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Verified step by step guidance

Understand the concept of personal liability protection: Personal liability protection means that the owners' personal assets are shielded from the debts and obligations of the business. This is a key feature of certain business organizations.

Learn about the taxation of business entities: Some business organizations are taxed as separate legal entities, meaning the business itself pays taxes on its income, separate from the owners.

Analyze the characteristics of each business type: Sole proprietorships and partnerships do not provide personal liability protection, and their income is taxed directly to the owners. Limited liability partnerships (LLPs) provide some liability protection but are not taxed as separate legal entities.

Understand the unique features of corporations: Corporations offer the most comprehensive personal liability protection for their owners (shareholders) and are taxed as separate legal entities, meaning the corporation itself pays taxes on its income.

Conclude that corporations are the type of business organization that most fully protects its owners from personal liabilities and is taxed as a separate legal entity.