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 form of business organization is established as a separate legal entity?

Corporation

Partnership

Joint venture

Sole proprietorship

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Understand the concept of a 'separate legal entity': A separate legal entity means the business is legally distinct from its owners, capable of owning assets, incurring liabilities, and entering into contracts independently.

Review the characteristics of each business organization type: Corporation, Partnership, Joint Venture, and Sole Proprietorship.

Analyze the Corporation: A corporation is established as a separate legal entity, meaning it is legally independent from its shareholders. It has its own rights and responsibilities under the law.

Compare the other options: Partnerships, Joint Ventures, and Sole Proprietorships are not separate legal entities. They are typically tied to the individuals involved, and liabilities may extend to the owners personally.

Conclude that the correct answer is 'Corporation,' as it is the only form of business organization among the options that is established as a separate legal entity.