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 is NOT an advantage of the corporate form of business organization?

Ability to raise large amounts of capital

Double taxation of earnings

Limited liability for shareholders

Continuous existence regardless of ownership changes

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Verified step by step guidance

Step 1: Understand the corporate form of business organization. Corporations are separate legal entities that provide certain advantages, such as limited liability for shareholders, the ability to raise large amounts of capital, and continuous existence regardless of ownership changes.

Step 2: Analyze the concept of 'double taxation of earnings.' This occurs because corporations pay taxes on their profits, and shareholders also pay taxes on dividends received from those profits. This is considered a disadvantage of the corporate form of business organization.

Step 3: Compare the options provided in the question. Identify which options are advantages of the corporate form of business organization (e.g., ability to raise capital, limited liability, and continuous existence).

Step 4: Recognize that 'double taxation of earnings' is not an advantage but rather a disadvantage of the corporate form of business organization.

Step 5: Conclude that the correct answer to the question is 'Double taxation of earnings,' as it is the only option listed that is not an advantage of the corporate form of business organization.