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 an advantage of the corporate form of business ownership?

Profits are taxed only once at the individual level

Corporations have a limited life span

Ownership is difficult to transfer

Limited liability for shareholders

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Verified step by step guidance

Understand the concept of 'corporate form of business ownership': Corporations are legal entities separate from their owners, providing certain advantages and disadvantages compared to other business structures like sole proprietorships or partnerships.

Clarify the term 'limited liability for shareholders': In a corporation, shareholders are only liable for the amount they have invested in the company. Their personal assets are protected from the corporation's debts and legal obligations.

Compare the given options: Evaluate each option to determine which aligns with the advantages of corporate ownership. For example, 'Profits are taxed only once at the individual level' applies to partnerships or sole proprietorships, not corporations. 'Corporations have a limited life span' is incorrect because corporations can exist perpetually. 'Ownership is difficult to transfer' is also incorrect as corporate shares are generally easy to transfer.

Identify the correct answer: The advantage of 'limited liability for shareholders' is unique to corporations and is a key reason why many businesses choose this structure.

Conclude the reasoning: Limited liability protects shareholders from losing more than their investment, making the corporate form of business ownership attractive for investors seeking reduced risk.