FINANCIAL ACCOUNTING, 13TH EDITION
BY C WILLIAM THOMAS AND WENDY M. TIETZ
CHAPTERS 1 - 12, COMPLETE
,
,Chapter 1 ur
The Financial Statements
ur ur
Ethics Check
ur
(5-10 min.) EC 1-1
ur u r ur
a. Objectivity and independence
ur ur
b. Due care ur
c. Integrity
d. Integrity
, Short Exercises ur
(10 min.) S 1-1ur u r ur
a. Corporation, limited partners of a Limited- u r u r u r u r u r
liabilitypartnership (LLP) and Limited- ru ur ur urur
liability company (LLC). If any of these businesses fails and cannot
urur ur ur ur ur ur ur ur ur ur u
r pay its liabilities, creditors cannot force the owners to pay the busine
ur ur ur ur ur ur ur ur ur ur ur
ss’s debts from the owners’ personal assets. Creditors can go after th
ur ur ur ur ur ur ur ur ur ur ur
e general partner of a limited liability partnership.
ur ur ur ur ur ur ur
b. Proprietorship. There is a single owner of the business,so the owne ur ur ur ur ur ur ur ur r
u ur ur
r is answerable to no other owner.
ur ur ur ur ur ur
c. Partnership. If the partnership fails and cannot pay its liabilities, cr ur ur ur ur ur ur ur ur ur ur
editors can force the partners to pay the business’s debts from th
ur ur ur ur ur ur ur ur u r u r u r
eir personal assets. Apartnership affords more protection for cre
u r u r u r r
u ur ur ur ur ur
ditors than a proprietorship because there are two or more owners to
ur ur ur ur ur ur ur ur ur ur ur r
u
share this liability. ur ur
(5 min.) S 1-2
ur u r ur
1. The entity assumption applies.
ur ur ur
2. Application of the entity assumption will separate Osmond’s person ur ur ur ur ur ur ur ur
al assets from the assets of Simple Treats, Inc. This will help Os
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mond, investors, and u r u r