Solution manual for financial accounting 13th edition by thomas tietz.pdf

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

,
,Chapter 1 m




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 care m




c. Integrity
d. Integrity

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




mowner is answerable to no other owner.
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c. Partnership. If the partnership fails and cannot pay its liabilities,
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m creditors can force the partners to pay the business’s
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m from m their m personal m assets. m A partnership affords more
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m protection for creditors than a proprietorship because there are
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m 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 Osmond’s
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m personal assets from the assets of Simple Treats, Inc. This will
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m help Osmond, investors, and
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