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 one of the following statements correctly applies to a sole proprietorship?

Profits are taxed at both the business and personal levels.

It is required by law to have at least two owners.

Ownership can be easily transferred by selling shares of stock.

The owner has unlimited personal liability for the debts of the business.

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Verified step by step guidance

Understand the concept of a sole proprietorship: A sole proprietorship is a business structure where a single individual owns and operates the business. It is the simplest and most common form of business ownership.

Clarify the taxation aspect: In a sole proprietorship, profits are taxed only at the personal level. The business itself is not taxed separately, as the income is reported on the owner's personal tax return.

Examine ownership requirements: A sole proprietorship does not require multiple owners. By definition, it is owned and operated by one individual.

Analyze transferability of ownership: Ownership in a sole proprietorship cannot be transferred by selling shares of stock, as there are no shares issued in this type of business structure.

Explain liability: The owner of a sole proprietorship has unlimited personal liability for the debts and obligations of the business. This means the owner's personal assets can be used to settle business debts if necessary.