SOLUTION MANUAL Financial Accounting,13th Edition
by William Thomas and Wendy M.Tietz Chapters 1 -
12, Complete
,
,Chapter 1 z
The Financial Statements
z z
EthicszCheck
(5-10zmin.)z ECz1-1
a. Objectivityzandzindependence
b. Duezcare
c. Integrity
d. Integrity
, Shortz Exercises
(10zmin.)z Sz1-1
a. Corporation,z limitedz partnersz ofz az Limited-
liabilityzpartnershipz(LLP)zandzzLimited-
liabilityzzcompanyz(LLC).zIfzanyzofzthesezbusinesseszfailszandzcannot
z payzitszliabilities,zcreditorszcannotzforcezthezownersztozpayzthezbu
siness’szdebtszfromzthezowners’zpersonalzassets.zCreditorszcanzgoz
afterzthezgeneralzpartnerzofzazlimitedzliabilityzpartnership.
b. Proprietorship.zThereziszazsinglezownerzofzthezbusiness,zsozthezow
nerziszanswerableztoznozotherzowner.
c. Partnership.zIfzthezpartnershipzfailszandzcannotzpayzitszliabilities,z
creditorszcanzforcezthezpartnersztozpayzthezbusiness’sz debtsz from
z theirz personalz assets.z Azpartnershipzaffordszmorezprotectionzfo
rzcreditorszthanzazproprietorshipzbecauseztherezareztwozorzmorezo
wnersztozsharezthiszliability.
(5zmin.)z Sz1-2
1. Thez entityz assumptionz applies.
2. ApplicationzofzthezentityzassumptionzwillzseparatezOsmond’szpers
onalzassetszfromzthezassetszofzSimplezTreats,z Inc.z Thisz willz helpz
Osmond,z investors,z and
by William Thomas and Wendy M.Tietz Chapters 1 -
12, Complete
,
,Chapter 1 z
The Financial Statements
z z
EthicszCheck
(5-10zmin.)z ECz1-1
a. Objectivityzandzindependence
b. Duezcare
c. Integrity
d. Integrity
, Shortz Exercises
(10zmin.)z Sz1-1
a. Corporation,z limitedz partnersz ofz az Limited-
liabilityzpartnershipz(LLP)zandzzLimited-
liabilityzzcompanyz(LLC).zIfzanyzofzthesezbusinesseszfailszandzcannot
z payzitszliabilities,zcreditorszcannotzforcezthezownersztozpayzthezbu
siness’szdebtszfromzthezowners’zpersonalzassets.zCreditorszcanzgoz
afterzthezgeneralzpartnerzofzazlimitedzliabilityzpartnership.
b. Proprietorship.zThereziszazsinglezownerzofzthezbusiness,zsozthezow
nerziszanswerableztoznozotherzowner.
c. Partnership.zIfzthezpartnershipzfailszandzcannotzpayzitszliabilities,z
creditorszcanzforcezthezpartnersztozpayzthezbusiness’sz debtsz from
z theirz personalz assets.z Azpartnershipzaffordszmorezprotectionzfo
rzcreditorszthanzazproprietorshipzbecauseztherezareztwozorzmorezo
wnersztozsharezthiszliability.
(5zmin.)z Sz1-2
1. Thez entityz assumptionz applies.
2. ApplicationzofzthezentityzassumptionzwillzseparatezOsmond’szpers
onalzassetszfromzthezassetszofzSimplezTreats,z Inc.z Thisz willz helpz
Osmond,z investors,z and
