Table of contents

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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

1. Which of the following statements about corporations is correct?

A corporation cannot incur liabilities and cannot own property.

A corporation can incur liabilities and can own property.

A corporation cannot incur liabilities but can own property.

A corporation can incur liabilities but cannot own property.

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Verified step by step guidance

Understand the concept of a corporation: A corporation is a legal entity that is separate from its owners (shareholders). It has rights and responsibilities similar to those of an individual.

Review the characteristics of a corporation: Corporations can enter into contracts, incur liabilities, own property, sue and be sued, and conduct business in their own name.

Analyze the options provided in the question: Evaluate each statement based on the legal and financial characteristics of a corporation.

Identify the correct statement: Based on the characteristics of a corporation, determine which statement accurately reflects its ability to incur liabilities and own property.

Conclude that the correct answer is: 'A corporation can incur liabilities and can own property,' as this aligns with the legal and financial attributes of a corporation.