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 best describes a legal entity with authority to manage the assets of a person or group?

Partnership

Sole proprietorship

Trust

Corporation

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Verified step by step guidance

Understand the concept of a legal entity: A legal entity is an organization or structure that has legal rights and responsibilities, such as entering into contracts, owning assets, and being subject to taxation.

Define the term 'Trust': A trust is a legal entity created to manage assets for the benefit of another person or group. It involves a trustee who holds and manages the assets according to the terms of the trust agreement.

Compare the options provided: Partnership and sole proprietorship are business structures where individuals manage their own assets, while a corporation is a separate legal entity primarily designed for business operations. None of these options specifically focus on managing assets for others.

Identify the correct answer: A trust is the best description of a legal entity with authority to manage the assets of a person or group, as its primary purpose is asset management for beneficiaries.

Conclude the reasoning: Based on the definitions and comparisons, the correct answer is 'Trust,' as it aligns with the description provided in the question.