Solution Manual for Financial Accounting 13th Edition by Thomas Tietz | Complete Chapters 1–12

SOLUTION MANUAL Financial Accounting,13th Edition
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by William Thomas and Wendy M.Tietz Chapters 1 -
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12, Complete
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,
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The Financial Statements
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Ethics Check
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(5-10 min.)
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a. Objectivity and independence
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b. Due caret



c. Integrity
d. Integrity

, Short Exercises

(10 min.) t S 1-1 t




a. Corporation, limited partners of a Limited- t t t tt tt




t liabilitypartnership (LLP) and Limited- tt tt t




liability company (LLC). If any of these businesses fails and cannot p
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ay its liabilities, creditors cannot force the owners to pay the busi
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ness’s debts from the owners’ personal assets. Creditors can go a
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fter the general partner of a limited liability partnership.
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b. Proprietorship. There is a single owner of the business, so the o
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wner is answerable to no other owner.
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c. Partnership. If the partnership fails and cannot pay
itsliabilities, creditors can
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pay thebusiness’s t debts from their
personal
assets.Apartnership affords more protection for cre
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ditors than a proprietorship
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more owners to
share this liability.
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(5 min.)
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1. The entity assumption applies.
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2. Application of the entity assumption will separate Osmond’sperso
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nal assets from the assets of Simple Treats, Inc. This will help
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Osmond, investors, and t t