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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which type of accounting entity is a for-profit corporation that benefits from a lower tax rate and avoids double taxation?

C Corporation

Partnership

Nonprofit Organization

S Corporation

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Verified step by step guidance

Understand the concept of double taxation: Double taxation occurs when a corporation pays taxes on its profits, and then shareholders pay taxes again on dividends received from those profits.

Learn about the characteristics of an S Corporation: An S Corporation is a type of for-profit entity that avoids double taxation by passing income directly to shareholders, who report it on their personal tax returns.

Compare tax rates: S Corporations benefit from lower tax rates because they are not subject to corporate income tax, unlike C Corporations.

Differentiate between the options: C Corporations are subject to double taxation, Partnerships are taxed differently, and Nonprofit Organizations are not for-profit entities and have distinct tax rules.

Conclude that the correct answer is S Corporation, as it meets the criteria of avoiding double taxation and benefiting from lower tax rates.