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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following types of entities are subject to limited liability?

Sole proprietorships

Unlimited companies

General partnerships

Corporations

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Verified step by step guidance

Understand the concept of limited liability: Limited liability means that the owners of a business are not personally responsible for the debts and liabilities of the business beyond their investment in the company.

Review the characteristics of each entity type: Sole proprietorships, unlimited companies, and general partnerships do not offer limited liability protection. The owners are personally liable for the debts of the business.

Focus on corporations: Corporations are separate legal entities from their owners (shareholders). This separation provides limited liability protection, meaning shareholders are only liable up to the amount they invested in the corporation.

Compare the entities: Sole proprietorships, unlimited companies, and general partnerships expose owners to personal liability, while corporations protect owners through limited liability.

Conclude that corporations are the correct answer because they are the only entity type listed that provides limited liability protection to their owners.