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

When selecting a business ownership structure, which of the following is most likely to be considered by business owners?

The color scheme of the company's logo

The level of personal liability they are willing to assume

The number of employees in competing businesses

The average age of their customers

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Verified step by step guidance

Understand the concept of business ownership structures: Business ownership structures determine how a business is legally organized, and they impact factors such as liability, taxation, and decision-making authority.

Focus on the key consideration mentioned in the problem: The level of personal liability business owners are willing to assume. This is a critical factor because different ownership structures (e.g., sole proprietorship, partnership, corporation) have varying levels of liability protection.

Compare the options provided: Evaluate each option to determine its relevance to the decision-making process for selecting a business ownership structure. For example, the color scheme of the company's logo is unrelated to ownership structure, while personal liability is directly relevant.

Explain why personal liability is important: In a sole proprietorship, the owner assumes full personal liability for business debts, whereas in a corporation, liability is limited to the amount invested in the business. This distinction can significantly influence the choice of structure.

Conclude that the correct answer is based on the relevance of personal liability: Business owners prioritize factors that affect their financial and legal risks, making the level of personal liability a key consideration when selecting an ownership structure.