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 can be considered disadvantages of sole proprietorships and partnerships?

Unlimited personal liability for business debts

Complex and costly formation procedures

Double taxation of profits

Ability to easily raise large amounts of capital

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Verified step by step guidance

Understand the key characteristics of sole proprietorships and partnerships. These business structures are typically simpler to form and operate compared to corporations, but they come with specific disadvantages.

Analyze the concept of 'unlimited personal liability for business debts.' In sole proprietorships and partnerships, owners are personally liable for all business debts, meaning their personal assets can be used to settle business obligations.

Evaluate the statement 'complex and costly formation procedures.' Sole proprietorships and partnerships are generally straightforward and inexpensive to establish, so this is not a disadvantage for these business structures.

Consider the concept of 'double taxation of profits.' Double taxation occurs in corporations where profits are taxed at the corporate level and again at the individual level when distributed as dividends. Sole proprietorships and partnerships avoid this issue, as profits are taxed only once at the individual level.

Examine the ability to 'easily raise large amounts of capital.' Sole proprietorships and partnerships often face challenges in raising significant capital because they rely on personal funds or loans, unlike corporations that can issue stock to attract investors.