SOLUTION MANUAL Financial Accounting,13th Edition by William Thomas and Wendy M.Tietz Chapters 1 - 12, Complete

SOLUTION MANUAL Financial Accounting,13th Edition
by William Thomas and Wendy M.Tietz Chapters -
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2, Complete
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,
,Chapter1
The Financial Statements

Ethics Check

(5-10 min.) EC-1
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a. Objectivity and independence
b. Due care
c. Integrity
d. Integrity

, Short Exercises

(10 min.) S-1
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a. Corporation, limited partners of a Limited-
liabilitypartnership (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 bu
siness’s debts from the owners’ personal assets. Creditors can go
after the general partner of a limited liability partnership.

b. Proprietorship. There is a single owner of the business,so the ow
ner is answerable to no other owner.

c. Partnership. If the partnership fails and cannot pay its liabilities,
creditors can force the partners to pay the business’s debts from
their personal assets. Apartnership affords more protection fo
r creditors than a proprietorship because there are two or more o
wners toshare this liability.




(5 min.) S-2
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1. The entity assumption applies.
2. Application of the entity assumption will separate Osmond’s pers
onal assets from the assets of Simple Treats, Inc. This will help
Osmond, investors, and