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 of the following are valid tax classification options available to a Limited Liability Company (LLC) in the United States? Select one answer.

Nonprofit organization

Sole proprietorship (if single-member)

C corporation

Partnership (if multi-member)

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Verified step by step guidance

Understand the concept of a Limited Liability Company (LLC): An LLC is a business structure in the United States that combines the limited liability protection of a corporation with the tax benefits of a partnership or sole proprietorship.

Review the tax classification options for an LLC: LLCs are unique because they can choose how they are taxed. The default classification depends on the number of members in the LLC, but they can also elect to be taxed differently by filing specific forms with the IRS.

Analyze the default tax classifications: A single-member LLC is typically taxed as a sole proprietorship by default, while a multi-member LLC is taxed as a partnership. These classifications are based on the IRS's 'check-the-box' regulations.

Consider the election options: LLCs can elect to be taxed as a corporation (either C corporation or S corporation) by filing IRS Form 8832 or Form 2553. This allows the LLC to change its default classification to suit its business needs.

Eliminate invalid options: Nonprofit organization is not a valid tax classification for an LLC. Nonprofits have a distinct legal structure and tax treatment that is separate from LLCs.