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

Which of the following is a disadvantage of the corporate form of business?

Double taxation of earnings

Limited ability to raise capital

Unlimited liability of owners

Lack of continuity in existence

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Understand the corporate form of business: A corporation is a legal entity separate from its owners, providing limited liability to its shareholders and continuity of existence.

Review the advantages of a corporation: Corporations can raise capital more easily through the issuance of shares, have limited liability for owners, and have continuity of existence regardless of changes in ownership.

Identify the disadvantages of a corporation: One key disadvantage is double taxation, where corporate earnings are taxed at the corporate level and again at the individual level when distributed as dividends.

Analyze the options provided: Double taxation of earnings is a disadvantage specific to corporations, while the other options (limited ability to raise capital, unlimited liability of owners, and lack of continuity in existence) are not applicable to corporations.

Conclude that the correct answer is 'Double taxation of earnings,' as it is a unique disadvantage of the corporate form of business compared to other business structures.