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

12. Stockholders' Equity

Characteristics of a Corporation

Financial Accounting

12. Stockholders' Equity

Characteristics of a Corporation

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Multiple Choice

Which of the following is involved in the creation of a corporation?

Receiving a business license from the city

Obtaining approval from the Internal Revenue Service (IRS)

Registering with the local chamber of commerce

Filing articles of incorporation with the state

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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 and is created under state law. It requires specific legal steps to be established.

Learn about articles of incorporation: Articles of incorporation are legal documents filed with the state government to formally create a corporation. These documents typically include details such as the corporation's name, purpose, and information about its directors and shareholders.

Recognize the role of the state in the creation of a corporation: Filing articles of incorporation with the state is a mandatory step in the process of forming a corporation. This step officially registers the corporation and grants it legal recognition.

Differentiate between other actions and filing articles of incorporation: Actions such as receiving a business license, obtaining IRS approval, or registering with the local chamber of commerce are not directly involved in the creation of a corporation. These may be additional steps for operating the business but are not part of the legal formation process.

Conclude that filing articles of incorporation with the state is the correct answer: This step is essential for the legal creation of a corporation and is required by state law.