Solution Manual for Financial Accounting, 13th Edition by Thomas & Tietz

SOLUTIONMANUALFinancialAccounting,13th Ed
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ition

byCWilliamThomasandWendyM.TietzChapters 1 r r




- 12, Complete
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,
,Chapter 1 r




The Financial Statements
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Ethics Check
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(5-10 min.) EC 1-1
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a. Objectivity and independence
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b. Due carer




c. Integrity
d. Integrity

, Short Exercisesr




(10 min.) S 1-1 r r r




a. Corporation, limited partners of a Limited- r r r r r




liabilitypartnership (LLP) and Limited-
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liability company (LLC). If any of these businesses fails and
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cannot pay its liabilities, creditors cannot force the owners
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to pay the business’s debts from the owners’ personal asset
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s. Creditors can go after the general partner of a limited lia
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bility partnership. r




b. Proprietorship. There is a single owner of the business,so t r r r r r r r r r r




he owner is answerable to no other owner.
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c. Partnership. If the partnership fails and cannot pay its liabi
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lities, creditors can force the partners to pay the business’s
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debts from their personal assets. Apartnership affords
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more protection for creditors than a proprietorship becaus
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e there are two or more owners toshare this liability.
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(5 min.) S 1-2
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1. The entity assumption applies.
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2. Application of the entity assumption will separate Osmondr r r r r r r