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 is NOT true for a sole proprietor?

A sole proprietor is the sole decision-maker for the business.

A sole proprietor has unlimited liability for business debts.

A sole proprietor can easily transfer ownership by selling shares to the public.

A sole proprietor's business income is taxed on the owner's personal tax return.

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Verified step by step guidance

Step 1: Understand the concept of a sole proprietorship. A sole proprietorship is a business owned and operated by one individual. It is the simplest form of business structure and does not involve the creation of a separate legal entity.

Step 2: Review the characteristics of a sole proprietorship. Key features include: the owner is the sole decision-maker, the owner has unlimited liability for business debts, and the business income is taxed on the owner's personal tax return.

Step 3: Analyze the statement 'A sole proprietor can easily transfer ownership by selling shares to the public.' Sole proprietorships do not issue shares, as they are not structured as corporations. Ownership transfer typically involves selling the business assets, not shares.

Step 4: Compare the given statements to the characteristics of a sole proprietorship. Identify which statement does not align with the definition and features of a sole proprietorship.

Step 5: Conclude that the statement 'A sole proprietor can easily transfer ownership by selling shares to the public' is NOT true for a sole proprietorship, as sole proprietorships do not issue shares and ownership transfer is not as straightforward as selling shares in a corporation.