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

SOLUTIONMANUALFinancialAccounting,13th
Edition
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byCWilliamThomasandWendyM.TietzChapters 1dd




- 12, Complete
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,
,Chapter 1 dd




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 dd




c. Integrity
d. Integrity

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




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

dd 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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dd liabilities, creditors can force the partners to pay the
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dd business’s d d debts d d from d d their d d personal d d assets.
d d A partnership affords more protection for creditors
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dd than a proprietorship because there are two or more
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dd owners toshare this liability.
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(5 min.)
dd d d S 1-2
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1. The entity assumption applies.
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