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

Sole proprietorships are typically small businesses that:

are owned and operated by a single individual

issue shares of stock to raise capital

have limited liability for their owners

are required to file separate tax returns from their owners

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Verified step by step guidance

Understand the concept of sole proprietorship: A sole proprietorship is a type of business structure where the business is owned and operated by a single individual. It is the simplest and most common form of business ownership.

Clarify the characteristics of sole proprietorships: Sole proprietorships do not issue shares of stock to raise capital, as they are not corporations. The owner typically raises capital through personal savings or loans.

Explain liability in sole proprietorships: Unlike corporations, sole proprietorships do not offer limited liability protection. The owner is personally liable for all debts and obligations of the business.

Discuss tax implications: Sole proprietorships do not file separate tax returns. Instead, the business income is reported on the owner's personal tax return using Schedule C (Profit or Loss from Business).

Identify the correct answer: Based on the characteristics discussed, the correct answer is that sole proprietorships are owned and operated by a single individual.