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 j




The Financial Statements
j j




Ethics Check
j




(5-10 min.) EC 1-1
j j j




a. Objectivity and independence
j j




b. Due carej




c. Integrity
d. Integrity

, Short Exercisesj




(10 min.) S1-1 j j j




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




liabilitypartnership (LLP) and Limited- j j j jj




liability company (LLC). If any of these businesses fails and cannot p
jj j j j j j j j j j j




ay its liabilities, creditors cannot force the owners to pay the busine
j j j j j j j j j j j




ss’s debts from the owners’ personal assets. Creditors can go after t
j j j j j j j j j j j




he general partner of a limited liability partnership.
j j j j j j j




b. Proprietorship. There is a single owner of the business,so the owne j j j j j j j j j j j




r is answerable to no other owner.
j j j j j j




c. Partnership. If the partnership fails and cannot pay its liabilities, cr
j j j j j j j j j j




editors can force the partners to pay the business’s debts from th
j j j j j j j j j j j




eir personal assets. Apartnership affords more protection for cre
j j j j j j j j j




ditors than a proprietorship because there are two or more owners
j j j j j j j j j j j




toshare this liability.
j j j




(5 min.) S 1-2
j j j




1. The entity assumption applies.
j j j




2. Application of the entity assumption will separate Osmond’s perso
j j j j j j j j




nal assets from the assets of Simple Treats, Inc. This will help Osm
j j j j j j j j j j j j




ond, investors, and j j