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

Barry owns a small business by himself and is personally liable for all the debts of the business. What type of business organization does Barry most likely have?

Corporation

Sole proprietorship

Partnership

Limited liability company (LLC)

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Verified step by step guidance

Step 1: Understand the characteristics of each type of business organization listed in the problem. A corporation is a separate legal entity where owners (shareholders) are not personally liable for the debts of the business. A partnership involves two or more individuals sharing ownership and liability. A limited liability company (LLC) provides limited liability protection to its owners. A sole proprietorship is owned by one individual who is personally liable for all debts of the business.

Step 2: Identify the key detail in the problem: Barry owns the business by himself and is personally liable for all debts. This indicates that the business does not have limited liability protection and is not shared with other owners.

Step 3: Eliminate options that do not match the description. A corporation and LLC provide limited liability protection, so they do not fit the scenario. A partnership requires multiple owners, which also does not apply here.

Step 4: Recognize that the sole proprietorship is the only type of business organization where the owner is personally liable for all debts and operates the business alone.

Step 5: Conclude that Barry most likely has a sole proprietorship based on the characteristics and details provided in the problem.