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

When starting a new business, which of the following forms of business organization offers the owner the least personal liability?

Sole proprietorship

Joint venture

Partnership

Corporation

Previous problemNext problem

Verified step by step guidance

Understand the concept of personal liability: Personal liability refers to the legal responsibility of an individual to pay debts or obligations incurred by the business. In some business structures, the owner's personal assets can be used to satisfy business debts.

Review the characteristics of a sole proprietorship: In a sole proprietorship, the owner has unlimited personal liability, meaning their personal assets can be used to cover business debts.

Examine the features of a partnership: In a partnership, all partners typically share unlimited personal liability for the debts and obligations of the business, unless it is a limited partnership where some partners have limited liability.

Analyze the structure of a joint venture: A joint venture is a temporary partnership for a specific project, and liability depends on the agreement between the parties. However, it often involves shared liability among the participants.

Understand the benefits of a corporation: A corporation is a separate legal entity from its owners (shareholders). This structure provides limited liability protection, meaning the owners are not personally liable for the corporation's debts beyond their investment in the company.