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 organizational forms provides its owners with limited liability?

Corporation

General partnership

Unlimited liability company

Sole proprietorship

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Understand the concept of limited liability: Limited liability means that the owners of a business are not personally responsible for the debts and obligations of the business beyond their investment in the company.

Review the organizational forms listed in the problem: Corporation, General partnership, Unlimited liability company, and Sole proprietorship.

Analyze each organizational form: A corporation provides limited liability to its owners (shareholders), meaning their personal assets are protected. In contrast, general partnerships and sole proprietorships typically involve unlimited liability, where owners are personally responsible for business debts.

Consider the legal structure of an unlimited liability company: This type of entity does not provide limited liability protection to its owners, making it distinct from a corporation.

Conclude that the correct organizational form providing limited liability is the corporation, as it shields its owners from personal financial risk beyond their investment in the business.