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 is a reason that corporations are able to raise large amounts of money compared to other types of business organizations?

Corporations are limited to a small number of owners.

Corporations can issue shares of stock to a large number of investors.

Corporations are not required to pay taxes on their profits.

Corporations have unlimited liability for their owners.

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Verified step by step guidance

Understand the structure of corporations: Corporations are distinct legal entities separate from their owners, which allows them to raise capital in unique ways compared to sole proprietorships or partnerships.

Recognize the key feature of corporations: Corporations can issue shares of stock, which represent ownership in the company. These shares can be sold to a large number of investors, enabling the corporation to raise substantial amounts of money.

Compare corporations to other business organizations: Unlike sole proprietorships and partnerships, which are typically limited to a small number of owners, corporations can have thousands or even millions of shareholders.

Clarify the incorrect options: Corporations are required to pay taxes on their profits, and they offer limited liability to their owners, meaning owners are not personally responsible for the corporation's debts. These features do not directly contribute to raising large amounts of money.

Conclude why issuing shares is the correct answer: The ability to issue shares to a large number of investors is the primary reason corporations can raise significant funds, making this the correct answer to the question.