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 forms of business organization offers limited liability to all its owners and allows for easy transfer of ownership?

General Partnership

Corporation

Partnership

Sole Proprietorship

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Verified step by step guidance

Understand the concept of limited liability: Limited liability means that the owners of the business are not personally responsible for the debts and liabilities of the business. Their financial risk is limited to the amount they have invested in the business.

Analyze the characteristics of each business organization: General Partnership, Partnership, Sole Proprietorship, and Corporation. Note that Sole Proprietorship and Partnerships generally do not offer limited liability to all owners.

Focus on the Corporation: Corporations are distinct legal entities separate from their owners (shareholders). This structure provides limited liability to all owners, meaning shareholders are not personally liable for the corporation's debts.

Consider the ease of ownership transfer: Corporations allow for easy transfer of ownership through the buying and selling of shares, which is not as straightforward in other forms of business organizations like Partnerships or Sole Proprietorships.

Conclude that the Corporation is the correct answer based on its ability to offer limited liability to all owners and facilitate easy transfer of ownership.