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

A business organized as a corporation:

Has unlimited liability for its owners

Is typically owned by a single individual

Is not required to pay income taxes

Is a separate legal entity from its owners

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Verified step by step guidance

Understand the concept of a corporation: A corporation is a type of business entity that is legally separate from its owners. This means the corporation itself can own assets, incur liabilities, and enter into contracts independently of its shareholders.

Clarify the liability aspect: Unlike sole proprietorships or partnerships, the owners (shareholders) of a corporation have limited liability. This means their personal assets are protected, and they are only liable for the amount they have invested in the corporation.

Examine ownership structure: Corporations are typically owned by multiple shareholders, not just a single individual. Ownership is represented by shares of stock, which can be bought and sold.

Understand tax obligations: Corporations are required to pay income taxes on their profits. This is different from sole proprietorships or partnerships, where profits are taxed as personal income of the owners.

Conclude with the key characteristic: The defining feature of a corporation is that it is a separate legal entity from its owners. This legal separation provides benefits such as limited liability and continuity of existence, even if ownership changes.