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 a main advantage of organizing a firm as a corporation?

Ownership is difficult to transfer

Limited liability for shareholders

The corporation is not a separate legal entity from its owners

Profits are taxed only once at the individual level

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Verified step by step guidance

Understand the concept of a corporation: A corporation is a separate legal entity from its owners, meaning it can own assets, incur liabilities, and enter into contracts independently of its shareholders.

Review the advantages of a corporation: One of the key benefits is limited liability for shareholders, which means that shareholders are only liable for the amount they have invested in the corporation and are not personally responsible for the corporation's debts.

Analyze the incorrect options: Ownership being difficult to transfer is not true for corporations, as shares can be bought and sold relatively easily. Additionally, profits in corporations are typically taxed twice—once at the corporate level and again at the individual level when dividends are distributed.

Focus on the correct answer: Limited liability for shareholders is a defining feature of corporations and a major advantage compared to other business structures like sole proprietorships or partnerships.

Conclude by emphasizing the importance of understanding the legal and financial structure of corporations to appreciate their advantages and disadvantages in business decision-making.