Solution manual for financial accounting 13th edition by thomas tietz.pdf

SOLUTIONMANUALFinancialAccounting,13th Ed
’




ition

byCWilliamThomasandWendyM.TietzChapters 1 ’ ’




- 12, Complete
’ ’

,
,Chapter 1 ’




The Financial Statements
’ ’




Ethics’Check

(5-10’min.)’ EC’1-1

a. Objectivity’and’independence
b. Due’care
c. Integrity
d. Integrity

, Short’ Exercises

(10’min.)’ S’1-1

a. Corporation,’ limited’ partners’ of’ a’ Limited-

liability’partnership’(LLP)’and’’Limited-
liability’’company’(LLC).’If’any’of’these’businesses’fails’and’
cannot’pay’its’liabilities,’creditors’cannot’force’the’owners’
to’pay’the’business’s’debts’from’the’owners’’personal’asset
s.’Creditors’can’go’after’the’general’partner’of’a’limited’lia
bility’partnership.

b. Proprietorship.’There’is’a’single’owner’of’the’business,s
’ o’t



he’owner’is’answerable’to’no’other’owner.

c. Partnership.’If’the’partnership’fails’and’cannot’pay’its’liabi

lities,’creditors’can’force’the’partners’to’pay’the’business’s
’ debts’ from’ their’ personal’ assets.’ A’partnership’affords’
more’protection’for’creditors’than’a’proprietorship’becaus
e’there’are’two’or’more’owners’to’share’this’liability.




(5’min.)’ S’1-2


1. The’ entity’ assumption’ applies.
2. Application’of’the’entity’assumption’will’separate’Osmond