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 business entity is NOT recognized as a separate tax entity by the U.S. tax system?

S corporation

Sole proprietorship

C corporation

Limited liability company (LLC)

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Understand the concept of a 'separate tax entity': A separate tax entity is a business structure where the business itself is taxed independently of its owners. Examples include corporations, which file their own tax returns and pay taxes on their profits.

Review the tax treatment of each business entity listed in the problem: Sole proprietorships, S corporations, C corporations, and Limited Liability Companies (LLCs).

Analyze the sole proprietorship: A sole proprietorship is not considered a separate tax entity. Instead, the income and expenses of the business are reported on the owner's personal tax return using Schedule C of Form 1040.

Compare with other entities: S corporations, C corporations, and LLCs are recognized as separate tax entities or have the option to be taxed as such. For example, C corporations file their own tax returns, while S corporations and LLCs may pass income through to their owners but are still recognized as distinct entities for tax purposes.

Conclude that the sole proprietorship is the correct answer because it is the only business entity in the list that is not treated as a separate tax entity by the U.S. tax system.