SOLUTION MANUAL b b
Financial Accounting,13th Edition
bb b b b b
by Thomas and M.Tietz all Chapters 1 - 12
bb bb bb bb bb bb bb bb
,
,Chapter 1 b b
The Financial Statements
bb bb
Ethics Check
b b
(5-10 min.)
bb b b EC 1-1
bb
a. Objectivity and independence
bb bb
b. Due care b b
c. Integrity
d. Integrity
, Short Exercises
bb
(10 min.) bb b b S 1-1
bb
a. Corporation, limited partners of a Limited-liability partnership bb bb bb bb bb bb
bb (LLP) and Limited-liability company (LLC). If any of these
bb bb bb bb bb bb bb bb
bb businesses bb fails bb and bb cannot bb pay its
bb bb liabilities, bb creditors
bb cannot force the owners to pay the business’s debts from the
b bb bb bb bb bb bb bb bb bb
bb owners’ personal assets. Creditors can go after the general
bb bb bb bb bb bb bb bb
bb partner of a limited liability partnership.
bb bb bb bb bb
b. Proprietorship. There is a single owner of the business, so the bb bb bb bb bb bb bb bb bb bb
bb owner is answerable to no other owner.
bb bb bb bb bb bb
c. Partnership. If the partnership fails and cannot pay its liabilities,
bb bb bb bb bb bb bb bb bb
bb creditors can force the bb bb bb b b partners b b to b b pay b b the b b business’s
b b debts from their personal bb bb bb b b assets. b b A b b partnership b b affords
b b more protection for creditors than a
bb bb bb bb bb b b proprietorship because bb
bb there are two or more owners toshare this liability.
bb bb bb bb bb bb bb bb
(5 min.) bb b b S 1-2
bb
1. The entity assumption applies.
b b b b b b
2. Application of the entity assumption will separate Osmond’s
bb bb bb bb bb bb bb
bb personal assets from the assets of Simple Treats, Inc. This will
bb bb bb bb bb bb bb bb bb bb
bb help b b Osmond, b b investors, b b and
Financial Accounting,13th Edition
bb b b b b
by Thomas and M.Tietz all Chapters 1 - 12
bb bb bb bb bb bb bb bb
,
,Chapter 1 b b
The Financial Statements
bb bb
Ethics Check
b b
(5-10 min.)
bb b b EC 1-1
bb
a. Objectivity and independence
bb bb
b. Due care b b
c. Integrity
d. Integrity
, Short Exercises
bb
(10 min.) bb b b S 1-1
bb
a. Corporation, limited partners of a Limited-liability partnership bb bb bb bb bb bb
bb (LLP) and Limited-liability company (LLC). If any of these
bb bb bb bb bb bb bb bb
bb businesses bb fails bb and bb cannot bb pay its
bb bb liabilities, bb creditors
bb cannot force the owners to pay the business’s debts from the
b bb bb bb bb bb bb bb bb bb
bb owners’ personal assets. Creditors can go after the general
bb bb bb bb bb bb bb bb
bb partner of a limited liability partnership.
bb bb bb bb bb
b. Proprietorship. There is a single owner of the business, so the bb bb bb bb bb bb bb bb bb bb
bb owner is answerable to no other owner.
bb bb bb bb bb bb
c. Partnership. If the partnership fails and cannot pay its liabilities,
bb bb bb bb bb bb bb bb bb
bb creditors can force the bb bb bb b b partners b b to b b pay b b the b b business’s
b b debts from their personal bb bb bb b b assets. b b A b b partnership b b affords
b b more protection for creditors than a
bb bb bb bb bb b b proprietorship because bb
bb there are two or more owners toshare this liability.
bb bb bb bb bb bb bb bb
(5 min.) bb b b S 1-2
bb
1. The entity assumption applies.
b b b b b b
2. Application of the entity assumption will separate Osmond’s
bb bb bb bb bb bb bb
bb personal assets from the assets of Simple Treats, Inc. This will
bb bb bb bb bb bb bb bb bb bb
bb help b b Osmond, b b investors, b b and
