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 most appropriate for Gala Company, a manufacturer of laptop computers seeking to raise significant capital and limit owner liability?

Corporation

Sole Proprietorship

Cooperative

Partnership

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Verified step by step guidance

Understand the characteristics of each type of business organization: Corporation, Sole Proprietorship, Cooperative, and Partnership. Focus on their ability to raise capital and the extent of owner liability.

Analyze the needs of Gala Company, which include raising significant capital and limiting owner liability. These requirements are key factors in determining the most suitable business organization.

Evaluate the Corporation structure: Corporations can issue shares to raise substantial capital and provide limited liability protection to their owners (shareholders). This aligns with Gala Company's needs.

Compare the Corporation structure to other options: Sole Proprietorships and Partnerships typically have unlimited liability for owners, and their ability to raise capital is limited. Cooperatives are member-driven and may not be ideal for a large-scale manufacturer seeking significant external investment.

Conclude that a Corporation is the most appropriate choice for Gala Company, as it meets the requirements of raising significant capital and limiting owner liability effectively.