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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following statements regarding the corporate form of business is correct?

Owners of a corporation have unlimited liability for the corporation's debts.

A corporation's life is limited to the life of its founders.

A corporation is a separate legal entity distinct from its owners.

Corporations are not subject to double taxation.

Previous problemNext problem

Verified step by step guidance

Understand the concept of a corporation: A corporation is a separate legal entity created under state or federal law. It is distinct from its owners, meaning it can own assets, incur liabilities, and enter into contracts independently of its shareholders.

Analyze the statement about liability: Owners of a corporation (shareholders) have limited liability, meaning they are not personally responsible for the corporation's debts beyond their investment in the corporation. This makes the first statement incorrect.

Evaluate the statement about the corporation's life: A corporation's life is not limited to the life of its founders. It can continue to exist even if the founders or shareholders change, making the second statement incorrect.

Review the statement about double taxation: Corporations are subject to double taxation. This occurs because the corporation pays taxes on its profits, and shareholders pay taxes again on dividends received. Therefore, the fourth statement is incorrect.

Confirm the correct statement: The correct answer is that a corporation is a separate legal entity distinct from its owners. This is a fundamental characteristic of the corporate form of business.