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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,
,Chapter1 t
The Financial Statements
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Ethics Check
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(5-10 min.)
t EC 1-1
t
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
t force the partners to
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.)
t S 1-2 t
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
tt tt tt tt
by William Thomas and Wendy M.Tietz Chapters 1 -
tt tt tt tt tt tt tt tt
12, Complete
tt tt
,
,Chapter1 t
The Financial Statements
t t
Ethics Check
t
(5-10 min.)
t EC 1-1
t
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
ttt tt t t t t t t t t t
ay its liabilities, creditors cannot force the owners to pay the busi
t t t tt t t t tt ttt ttt ttt
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.
t t t t t t t t
b. Proprietorship. There is a single owner of the business, so the o
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wner is answerable to no other owner.
t t t t t t
c. Partnership. If the partnership fails and cannot pay
itsliabilities, creditors can
t force the partners to
pay thebusiness’s t debts from their
personal
assets.Apartnership affords more protection for cre
t t t t t t
ditors than a proprietorship
t t t because there are two or
more owners to
share this liability.
t t
(5 min.)
t S 1-2 t
1. The entity assumption applies.
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2. Application of the entity assumption will separate Osmond’sperso
t t t t t t t t
nal assets from the assets of Simple Treats, Inc. This will help
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Osmond, investors, and t t
