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 is true regarding corporations other than S corporations?

They are limited to 100 shareholders, all of whom must be U.S. citizens.

They are subject to double taxation, meaning both the corporation and its shareholders may be taxed on earnings.

Their profits are always taxed only once at the shareholder level.

They cannot issue more than one class of stock.

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Verified step by step guidance

Understand the concept of double taxation: Corporations, other than S corporations, are subject to double taxation. This means that the corporation pays taxes on its earnings at the corporate level, and when these earnings are distributed as dividends to shareholders, the shareholders also pay taxes on the dividends received.

Review the characteristics of S corporations: S corporations are limited to 100 shareholders, all of whom must be U.S. citizens, and they avoid double taxation by passing corporate income directly to shareholders to be taxed at the individual level.

Analyze the statement about profits being taxed only once: This is incorrect for corporations other than S corporations, as their profits are taxed at both the corporate and shareholder levels.

Evaluate the statement about issuing stock: Corporations other than S corporations can issue multiple classes of stock, unlike S corporations, which are restricted to issuing only one class of stock.

Conclude that the correct answer is the statement regarding double taxation, as it accurately describes the tax treatment of corporations other than S corporations.