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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following is a disadvantage of a general partnership?

Complex and costly formation process

Unlimited personal liability for business debts

Double taxation of profits

Limited ability to raise capital

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Understand the concept of a general partnership: A general partnership is a business structure where two or more individuals share ownership, profits, and liabilities. Each partner is personally liable for the debts and obligations of the business.

Analyze the options provided in the question: Evaluate each option to determine whether it aligns with the characteristics of a general partnership.

Option 1: 'Complex and costly formation process' - General partnerships are relatively simple and inexpensive to form compared to other business structures like corporations. This is not a disadvantage of a general partnership.

Option 2: 'Unlimited personal liability for business debts' - In a general partnership, each partner is personally liable for the debts and obligations of the business. This is a significant disadvantage because personal assets can be at risk.

Option 3: 'Double taxation of profits' - Double taxation typically applies to corporations, not general partnerships. In a general partnership, profits are taxed only once at the individual level. This is not a disadvantage of a general partnership.