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

Most banks are established as which type of business organization?

Limited liability companies (LLCs)

Partnerships

Sole proprietorships

Corporations

Previous problemNext problem

Verified step by step guidance

Understand the types of business organizations: Corporations, Limited Liability Companies (LLCs), Partnerships, and Sole Proprietorships. Each has distinct characteristics in terms of ownership, liability, and structure.

Recognize that banks typically require significant capital to operate, which is easier to raise through issuing shares. This is a key feature of corporations.

Note that corporations provide limited liability to their shareholders, meaning shareholders are not personally liable for the corporation's debts. This is crucial for large-scale financial institutions like banks.

Understand that corporations have a perpetual existence, meaning they continue to exist even if ownership changes. This stability is essential for banks to maintain trust and long-term operations.

Conclude that most banks are established as corporations because this structure aligns with their need for large-scale capital, limited liability, and operational stability.