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 problem is more likely to affect a partnership than a corporation?

Ability to issue shares to raise capital

Unlimited personal liability for business debts

Separation of ownership and management

Double taxation of profits

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Verified step by step guidance

Understand the key differences between a partnership and a corporation. A partnership is typically owned by two or more individuals who share profits, losses, and liabilities, whereas a corporation is a separate legal entity owned by shareholders.

Review the concept of 'unlimited personal liability.' In a partnership, partners are personally liable for the debts of the business, meaning their personal assets can be used to settle business debts. This is not the case for corporations, where liability is limited to the amount invested in shares.

Analyze the issue of raising capital. Corporations can issue shares to raise capital, which is a significant advantage over partnerships that rely on contributions from partners or loans.

Consider the concept of 'double taxation.' Corporations face double taxation because profits are taxed at the corporate level and again at the shareholder level when dividends are distributed. Partnerships avoid this issue as profits are passed directly to partners and taxed as personal income.

Evaluate the separation of ownership and management. Corporations often have a clear separation between owners (shareholders) and managers, while partnerships typically involve direct management by the partners, which can lead to different operational challenges.