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, d limited d partners d of d a d Limited-liability
partnership d(LLP) dand d dLimited-liability d dcompany d(LLC). dIf dany
d
d of dthese dbusinesses dfails dand dcannot dpay dits dliabilities,
d creditors dcannot dforce dthe downers dto dpay dthe dbusiness’s
d debts dfrom dthe downers’ dpersonal dassets. dCreditors dcan dgo
d after dthe dgeneral dpartner dof da dlimited dliability dpartnership.
b. Proprietorship. dThere dis da dsingle downer dof dthe dbusiness, dso
dthe downer dis danswerable dto dno dother downer.
c. Partnership. dIf dthe dpartnership dfails dand dcannot dpay dits
d liabilities, dcreditors dcan dforce dthe dpartners dto dpay dthe
d business’s d debts d from d their d personal d assets. d A
partnership daffords dmore dprotection dfor dcreditors dthan da
d
d proprietorship dbecause dthere dare dtwo dor dmore downers dto
share dthis dliability.
d
(5 dmin.) d S d1-2
1. The d entity d assumption d applies.
2. Application dof dthe dentity dassumption dwill dseparate dOsmond’s
d personal dassets dfrom dthe dassets dof dSimple dTreats, d Inc.
d This d will d help d Osmond, d investors, d and