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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Why were big businesses usually set up as corporations?

Because corporations are easier to dissolve than other business forms

To avoid all forms of government regulation

Because corporations guarantee higher profits than partnerships

To limit the personal liability of owners and facilitate the raising of large amounts of capital

Previous problemNext problem

Verified step by step guidance

Understand the concept of a corporation: A corporation is a legal entity that is separate from its owners, providing limited liability protection to its shareholders. This means that the personal assets of the owners are protected from the corporation's debts and obligations.

Recognize the advantages of corporations in raising capital: Corporations can issue shares of stock to investors, which allows them to raise large amounts of capital more easily compared to other business forms like sole proprietorships or partnerships.

Compare corporations to other business forms: Unlike partnerships or sole proprietorships, corporations have the ability to exist independently of their owners, making them more stable and attractive to investors.

Understand the role of limited liability: Limited liability means that shareholders are only responsible for the amount they have invested in the corporation and are not personally liable for the corporation's debts. This reduces risk for owners and encourages investment.

Conclude why big businesses are set up as corporations: The combination of limited liability and the ability to raise substantial capital makes corporations the preferred structure for large businesses, as it facilitates growth and protects owners from excessive financial risk.