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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is true of a joint stock company?

It is dissolved automatically upon the death of a shareholder.

It cannot issue shares to the public.

Its owners have unlimited liability for the company's debts.

It has a separate legal existence from its owners.

Previous problemNext problem

Verified step by step guidance

Understand the concept of a joint stock company: A joint stock company is a type of business entity where ownership is divided into shares, and shareholders own these shares. It is a separate legal entity from its owners, meaning it can own assets, incur liabilities, and enter into contracts independently of its shareholders.

Analyze the first statement: 'It is dissolved automatically upon the death of a shareholder.' This is incorrect because a joint stock company has perpetual succession, meaning it continues to exist regardless of changes in ownership or the death of shareholders.

Analyze the second statement: 'It cannot issue shares to the public.' This is incorrect because joint stock companies, especially public limited companies, are allowed to issue shares to the public to raise capital.

Analyze the third statement: 'Its owners have unlimited liability for the company's debts.' This is incorrect because shareholders in a joint stock company have limited liability, meaning their financial responsibility is limited to the amount they invested in the company.

Analyze the fourth statement: 'It has a separate legal existence from its owners.' This is correct because a joint stock company is recognized as a separate legal entity, distinct from its shareholders, which is one of its defining characteristics.