SOLUTION MANUAL Financial Accounting, 13th Edition by C William Thomas and Wendy M. Tietz Chapters 1 - 12, Complete

SOLUTIONMANUALFinancialAccounting,13th
bb Edition

byCWilliamThomasandWendyM.TietzChapters 1bb




bb - 12, Complete
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,
,Chapter 1 bb




The Financial Statements
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Ethics Check
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(5-10 min.)
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a. Objectivity and independence
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b. Due care bb




c. Integrity
d. Integrity

, Short Exercises
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(10 min.) S 1-1
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a. Corporation, b b limited b b partners b b of b b a b b Limited-
liabilitypartnership (LLP) and Limited-liability company
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bb (LLC). If any of these businesses fails and cannot pay its
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bb liabilities, creditors cannot force the owners to pay the
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bb business’s debts from the owners’ personal assets.
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bb Creditors can go after the general partner of a limited
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bb liability partnership. bb




b. Proprietorship. bb There bb is bb a bb single bb owner bb of bb the

bb business,so the owner is answerable to no other owner.
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c. Partnership. If the partnership fails and cannot pay its
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bb liabilities, creditors can force the partners to pay the
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bb business’s b b debts b b from b b their b b personal b b assets.
b b A partnership affords more protection for creditors
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bb than a proprietorship because there are two or more
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bb owners toshare this liability.
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(5 min.)
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1. The entity assumption applies.
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