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 one of the following applies to a general partnership?

Ownership can be transferred freely without the consent of other partners.

Profits are taxed at the corporate level before being distributed to partners.

Partners are not personally liable for the actions of other partners.

All partners have unlimited liability for the debts of the business.

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Verified step by step guidance

Understand the concept of a general partnership: A general partnership is a business structure where two or more individuals manage and operate a business together, sharing profits, losses, and liabilities.

Clarify the key characteristics of a general partnership: In this structure, partners have unlimited liability, meaning they are personally responsible for the debts and obligations of the business.

Analyze the options provided: Evaluate each statement to determine its accuracy in the context of a general partnership. For example, ownership transfer typically requires consent from other partners, profits are taxed at the individual level (not corporate), and partners are personally liable for the actions of other partners.

Focus on the correct answer: The defining feature of a general partnership is that all partners have unlimited liability for the debts of the business. This means their personal assets can be used to satisfy business debts if necessary.

Conclude by reinforcing the concept: Unlimited liability is a critical aspect of general partnerships, distinguishing them from other business structures like corporations or limited liability partnerships.