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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Entities taxed as partnerships track the equity of their owners using a(n) ______ for each owner.

common stock account

retained earnings account

dividends payable account

capital account

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Verified step by step guidance

Understand the concept of partnerships: Partnerships are business entities where two or more individuals share ownership. Unlike corporations, partnerships do not issue common stock or track retained earnings in the same way.

Learn about equity tracking in partnerships: Partnerships use capital accounts to track the equity of each owner. A capital account reflects the owner's contributions, share of profits or losses, and withdrawals.

Eliminate incorrect options: Common stock accounts are used in corporations, not partnerships. Retained earnings accounts are also specific to corporations, representing accumulated profits. Dividends payable accounts track dividends owed to shareholders, which is irrelevant for partnerships.

Focus on the correct option: The capital account is the appropriate choice for partnerships because it directly tracks the financial relationship between the partnership and each owner.

Apply this knowledge to the problem: Recognize that the correct answer is 'capital account,' as it aligns with the way partnerships manage owner equity.