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 one of the requirements for a partnership arrangement?

The business must be incorporated under state law.

The partnership must have at least 100 partners.

There must be an agreement to share profits and losses.

All partners must contribute equal amounts of capital.

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Verified step by step guidance

Understand the concept of a partnership: A partnership is a business arrangement where two or more individuals agree to operate a business together and share its profits and losses.

Review the requirements for forming a partnership: One of the key requirements is that there must be an agreement among the partners to share profits and losses. This is a fundamental characteristic of a partnership.

Eliminate incorrect options: Analyze each option provided in the problem. For example, incorporation under state law applies to corporations, not partnerships. Similarly, partnerships do not require a minimum of 100 partners, nor do all partners need to contribute equal amounts of capital.

Focus on the correct answer: The correct requirement for a partnership is the agreement to share profits and losses. This agreement can be formal (written) or informal (verbal), but it must exist for the partnership to be valid.

Summarize the reasoning: The defining feature of a partnership is the mutual agreement to share profits and losses, which distinguishes it from other business arrangements like corporations or sole proprietorships.