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

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

,
,Chapter 1
The Financial Statements

Ethics Check

(5-10 min.) EC 1-1

a. Objectivity and independence
b. Due care
c. Integrity
d. Integrity

, Short Exercises

(10 min.) S 1-1

a. Corporation, s limited s partners s of s a s Limited-liability
partnership s(LLP) sand s sLimited-liability s scompany s(LLC). sIf sany
s


s of sthese sbusinesses sfails sand scannot spay sits sliabilities,
s creditors scannot sforce sthe sowners sto spay sthe sbusiness’s
s debts sfrom sthe sowners’ spersonal sassets. sCreditors scan sgo
s after sthe sgeneral spartner sof sa slimited sliability spartnership.

b. Proprietorship. sThere sis sa ssingle sowner sof sthe sbusiness, sso sthe
sowner sis sanswerable sto sno sother sowner.

c. Partnership. sIf sthe spartnership sfails sand scannot spay sits
s liabilities, screditors scan sforce sthe spartners sto spay sthe
s business’s s debts s from s their s personal s assets. s A
partnership saffords smore sprotection sfor screditors sthan sa
s


s proprietorship sbecause sthere sare stwo sor smore sowners sto
share sthis sliability.
s




(5 smin.) s S s1-2


1. The s entity s assumption s applies.
2. Application sof sthe sentity sassumption swill sseparate sOsmond’s
s personal sassets sfrom sthe sassets sof sSimple sTreats, s Inc. s This
s will s help s Osmond, s investors, s and