SOLUTION MANUAL Financial Accounting,13th Edition
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by William Thomas and Wendy M.Tietz Chapters 1 -
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uu 12, Complete
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,
,Chapter1 u
The Financial Statements
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Ethics Check
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(5-10 min.) EC 1-1
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a. Objectivity and independence
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b. Due care uu
c. Integrity
d. Integrity
, Short Exercises
u u u
(10 min.) S 1-1 uu uu
a. Corporation, limited partners of a Limited-liabilityj
uu partnership (LLP) and uu uu u u Limited-liability company (LLC). If any u u uu uu uu
uu of these businesses fails and cannot pay its liabilities,
uu u u u u u u u u u u u u u u
u u creditors cannot force the owners to pay the business’s
u u u u u u u u u u u u u u u u
u u debts from the owners’ u u u u uu u u personal u u assets. u u Creditors u u can
u u go u u after u u the u u general partner of a limited liability uu uu uu uu uu
uu partnership.
b. Proprietorship. There is a single owner of the u u u u u u u u u u u u u u
u u business,so the owner is answerable to no other owner.
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c. Partnership. If the partnership fails and cannot pay its uu uu uu uu uu uu uu uu
u u liabilities, creditors can force the partners to pay the
u u u u u u u u u u u u u u u u
uu business’s u u u u debts u u u u from u u u u their u u u u personal u u u u assets. u u u u A
u u partnership affords more protection for creditors than a uu uu uu uu uu uu uu
uu proprietorship because there are two or more owners toshare uu uu uu uu uu uu uu uu
uu this liability.
uu
(5 min.) S 1-2
uu uu
1. The entity assumption applies.
u u u u u u
2. Application of the entity assumption will separate Osmond’s
uu uu uu uu uu uu uu
uu personal assets from the assets of Simple Treats,
u u u u u u u u u u u u u u u u Inc.
u u This will uu u u help u u Osmond, u u investors, u u and
uu uu uu uu
by William Thomas and Wendy M.Tietz Chapters 1 -
uu uu uu uu uu uu uu uu uu
uu 12, Complete
uu
,
,Chapter1 u
The Financial Statements
uu uu
Ethics Check
u uu
(5-10 min.) EC 1-1
uu uu
a. Objectivity and independence
uu uu
b. Due care uu
c. Integrity
d. Integrity
, Short Exercises
u u u
(10 min.) S 1-1 uu uu
a. Corporation, limited partners of a Limited-liabilityj
uu partnership (LLP) and uu uu u u Limited-liability company (LLC). If any u u uu uu uu
uu of these businesses fails and cannot pay its liabilities,
uu u u u u u u u u u u u u u u
u u creditors cannot force the owners to pay the business’s
u u u u u u u u u u u u u u u u
u u debts from the owners’ u u u u uu u u personal u u assets. u u Creditors u u can
u u go u u after u u the u u general partner of a limited liability uu uu uu uu uu
uu partnership.
b. Proprietorship. There is a single owner of the u u u u u u u u u u u u u u
u u business,so the owner is answerable to no other owner.
uu uu uu uu uu uu uu uu
c. Partnership. If the partnership fails and cannot pay its uu uu uu uu uu uu uu uu
u u liabilities, creditors can force the partners to pay the
u u u u u u u u u u u u u u u u
uu business’s u u u u debts u u u u from u u u u their u u u u personal u u u u assets. u u u u A
u u partnership affords more protection for creditors than a uu uu uu uu uu uu uu
uu proprietorship because there are two or more owners toshare uu uu uu uu uu uu uu uu
uu this liability.
uu
(5 min.) S 1-2
uu uu
1. The entity assumption applies.
u u u u u u
2. Application of the entity assumption will separate Osmond’s
uu uu uu uu uu uu uu
uu personal assets from the assets of Simple Treats,
u u u u u u u u u u u u u u u u Inc.
u u This will uu u u help u u Osmond, u u investors, u u and
