SOLUTION MANUAL Financial Accounting,13th Edition
by William Thomas and Wendy M.Tietz Chapters 1 -
12, Complete
,
,Chapter 1 h
The Financial Statements
h h
EthicshCheck
(5-10hmin.)h ECh1-1
a. Objectivityhandhindependence
b. Duehcare
c. Integrity
d. Integrity
, Shorth Exercises
(10hmin.)h Sh1-1
a. Corporation,h limitedh partnersh ofh ah Limited-
liabilityhpartnershiph(LLP)handhhLimited-
liabilityhhcompanyh(LLC).hIfhanyhofhthesehbusinesseshfailshandhcann
othpayhitshliabilities,hcreditorshcannothforcehthehownershtohpayhth
ehbusiness’shdebtshfromhthehowners’hpersonalhassets.hCreditorshc
anhgohafterhthehgeneralhpartnerhofhahlimitedhliabilityhpartnership.
b. Proprietorship.hTherehishahsinglehownerhofhthehbusiness,hsohtheho
wnerhishanswerablehtohnohotherhowner.
c. Partnership.hIfhthehpartnershiphfailshandhcannothpayhitshliabilities,
h creditorshcanhforcehthehpartnershtohpayhthehbusiness’sh debtsh fr
omh theirh personalh assets.h Ahpartnershiphaffordshmorehprotecti
onhforhcreditorshthanhahproprietorshiphbecausehthereharehtwohorh
morehownershtohsharehthishliability.
(5hmin.)h Sh1-2
1. Theh entityh assumptionh applies.
2. ApplicationhofhthehentityhassumptionhwillhseparatehOsmond’shpe
rsonalhassetshfromhthehassetshofhSimplehTreats,h Inc.h Thish willh he
lph Osmond,h investors,h and
by William Thomas and Wendy M.Tietz Chapters 1 -
12, Complete
,
,Chapter 1 h
The Financial Statements
h h
EthicshCheck
(5-10hmin.)h ECh1-1
a. Objectivityhandhindependence
b. Duehcare
c. Integrity
d. Integrity
, Shorth Exercises
(10hmin.)h Sh1-1
a. Corporation,h limitedh partnersh ofh ah Limited-
liabilityhpartnershiph(LLP)handhhLimited-
liabilityhhcompanyh(LLC).hIfhanyhofhthesehbusinesseshfailshandhcann
othpayhitshliabilities,hcreditorshcannothforcehthehownershtohpayhth
ehbusiness’shdebtshfromhthehowners’hpersonalhassets.hCreditorshc
anhgohafterhthehgeneralhpartnerhofhahlimitedhliabilityhpartnership.
b. Proprietorship.hTherehishahsinglehownerhofhthehbusiness,hsohtheho
wnerhishanswerablehtohnohotherhowner.
c. Partnership.hIfhthehpartnershiphfailshandhcannothpayhitshliabilities,
h creditorshcanhforcehthehpartnershtohpayhthehbusiness’sh debtsh fr
omh theirh personalh assets.h Ahpartnershiphaffordshmorehprotecti
onhforhcreditorshthanhahproprietorshiphbecausehthereharehtwohorh
morehownershtohsharehthishliability.
(5hmin.)h Sh1-2
1. Theh entityh assumptionh applies.
2. ApplicationhofhthehentityhassumptionhwillhseparatehOsmond’shpe
rsonalhassetshfromhthehassetshofhSimplehTreats,h Inc.h Thish willh he
lph Osmond,h investors,h and
