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 of the following is an important factor to consider when selecting a type of business ownership?

The owner's favorite management style

The color scheme of the company's logo

The number of employees in competing businesses

The level of personal liability the owner is willing to assume

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Verified step by step guidance

Understand the concept of business ownership: Business ownership refers to the legal structure of a business, which determines how the business is operated, taxed, and how liabilities are handled.

Identify the key factors in selecting a business ownership type: These include personal liability, taxation, management control, ability to raise capital, and ease of formation.

Focus on personal liability: Personal liability refers to the extent to which the owner is personally responsible for the debts and obligations of the business. This is a critical factor because it impacts the owner's financial risk.

Compare different types of business ownership: For example, sole proprietorships have unlimited personal liability, partnerships share liability among partners, and corporations limit liability to the amount invested in the business.

Evaluate the owner's willingness to assume liability: The decision should align with the owner's risk tolerance and financial situation, as this will influence the choice of business structure (e.g., sole proprietorship, partnership, corporation, or LLC).