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 stage of a business organization is characterized by the business being legally formed and sales beginning to occur?

Start-up stage

Liquidation stage

Maturity stage

Decline stage

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Verified step by step guidance

Understand the stages of a business organization: Businesses typically go through several stages, including start-up, growth, maturity, decline, and liquidation. Each stage has distinct characteristics.

Focus on the start-up stage: This stage is characterized by the legal formation of the business, initial investments, and the beginning of operations, including the generation of sales revenue.

Compare the characteristics of other stages: The liquidation stage involves winding down the business and selling off assets. The maturity stage is when the business has stable sales and operations. The decline stage is marked by decreasing sales and profitability.

Identify the stage where legal formation and sales begin: Based on the definitions, the start-up stage is the correct answer as it aligns with the description provided in the question.

Conclude that the start-up stage is the phase where the business is legally formed and sales begin to occur, distinguishing it from the other stages listed.