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 type of business organization is considered a separate legal entity with the same rights and responsibilities as a person?

Partnership

Proprietorship

Corporation

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Verified step by step guidance

Understand the concept of a 'separate legal entity': A separate legal entity is an organization that is legally distinct from its owners, meaning it can own property, enter contracts, sue or be sued, and has its own rights and responsibilities similar to a person.

Review the characteristics of a corporation: A corporation is a type of business organization that is considered a separate legal entity. It is owned by shareholders and managed by a board of directors. It has the ability to exist independently of its owners and can continue to operate even if ownership changes.

Compare the corporation to other business organizations: A proprietorship is owned by one individual and is not legally separate from its owner, meaning the owner is personally liable for the business's debts. A partnership involves two or more individuals who share ownership and are also personally liable for the business's obligations.

Recognize why a corporation is the correct answer: Unlike proprietorships and partnerships, a corporation is legally distinct from its owners, providing limited liability protection to shareholders and allowing the business to operate as its own entity.

Conclude that the correct answer is 'Corporation' because it meets the criteria of being a separate legal entity with the same rights and responsibilities as a person.