Financial Accounting – C. William Thomas & Wendy M. Tietz, 13th Edition, Complete Solution Manual (Chapters 1–12)

SOLUTION MANUAL

Financial Accounting, 13th Edition

by C William Thomas and Wendy M. Tietz Chapters 1 - 12, Complete

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,Chapter1 rh




The Financial Statements
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Ethics Check
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(5-10min.) EC1-1
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a. Objectivityandindependence
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b. Due care rh




c. Integrity
d. Integrity

, Short Exercises r h




(10min.) S1-1 h
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a. Corporation, limited partners of a Limited- r h r h r h r h r h




liabilitypartnership (LLP) and Limited- h
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liability company (LLC). If any of these businesses fails and cannot pa
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y its liabilities, creditors cannot force the owners to pay the business
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’s debts from the owners’ personal assets. Creditors can go after the
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general partner of a limited liability partnership. rh rh rh rh rh rh




b. Proprietorship. There is a single owner of the business,so the owner rh rh rh rh rh rh rh rh h
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is answerable to no other owner.
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c. Partnership. If the partnership fails and cannot pay its liabilities, cre rh rh rh rh rh rh rh rh rh rh




ditors can force the partners to pay the business’s debts from th
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eir personal assets. Apartnership affords more protection for cr
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editors than a proprietorship because there are two or more owners
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toshare this liability.
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(5min.) S1-2 h
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1. The entity assumption applies. r h r h r h




2. Application of the entity assumption will separate Osmond’s perso rh rh rh rh rh rh rh rh




nal assets from the assets of Simple Treats, Inc. This will help Os
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mond, investors, and r h r h