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