SOLUTION MANUAL 0
Financial Accounting, 13th Edition
0 0 0
by C William Thomas and Wendy M. Tietz Chapters
0 0 0 0 0 0 0 0 0
1 - 12, Complete
0 0 0
,
,Chapter 1 0
The Financial Statements
0 0
Ethics0Check
(5-100min.)0 EC01-1
a. Objectivity0and0independence
b. Due0care
c. Integrity
d. Integrity
, Short0 Exercises
(100min.)0 S01-1
a. Corporation,0 limited0 partners0 of0 a0 Limited-
liability0partnership0(LLP)0and00Limited-
liability00company0(LLC).0If0any0of0these0businesses0fails0and0cann
ot0pay0its0liabilities,0creditors0cannot0force0the0owners0to0pay0the
0business’s0debts0from0the0owners’0personal0assets.0Creditors0ca
n0go0after0the0general0partner0of0a0limited0liability0partnership.
b. Proprietorship.0There0is0a0single0owner0of0the0business,0so0the0o
wner0is0answerable0to0no0other0owner.
c. Partnership.0If0the0partnership0fails0and0cannot0pay0its0liabilities,
0creditors0can0force0the0partners0to0pay0the0business’s0 debts0 fro
m0 their0 personal0 assets.0 A0partnership0affords0more0protectio
n0for0creditors0than0a0proprietorship0because0there0are0two0or0m
ore0owners0to0share0this0liability.
(50min.)0 S01-2
1. The0 entity0 assumption0 applies.
2. Application0of0the0entity0assumption0will0separate0Osmond’s0per
sonal0assets0from0the0assets0of0Simple0Treats,0 Inc.0 This0 will0 hel
p0 Osmond,0 investors,0 and
Financial Accounting, 13th Edition
0 0 0
by C William Thomas and Wendy M. Tietz Chapters
0 0 0 0 0 0 0 0 0
1 - 12, Complete
0 0 0
,
,Chapter 1 0
The Financial Statements
0 0
Ethics0Check
(5-100min.)0 EC01-1
a. Objectivity0and0independence
b. Due0care
c. Integrity
d. Integrity
, Short0 Exercises
(100min.)0 S01-1
a. Corporation,0 limited0 partners0 of0 a0 Limited-
liability0partnership0(LLP)0and00Limited-
liability00company0(LLC).0If0any0of0these0businesses0fails0and0cann
ot0pay0its0liabilities,0creditors0cannot0force0the0owners0to0pay0the
0business’s0debts0from0the0owners’0personal0assets.0Creditors0ca
n0go0after0the0general0partner0of0a0limited0liability0partnership.
b. Proprietorship.0There0is0a0single0owner0of0the0business,0so0the0o
wner0is0answerable0to0no0other0owner.
c. Partnership.0If0the0partnership0fails0and0cannot0pay0its0liabilities,
0creditors0can0force0the0partners0to0pay0the0business’s0 debts0 fro
m0 their0 personal0 assets.0 A0partnership0affords0more0protectio
n0for0creditors0than0a0proprietorship0because0there0are0two0or0m
ore0owners0to0share0this0liability.
(50min.)0 S01-2
1. The0 entity0 assumption0 applies.
2. Application0of0the0entity0assumption0will0separate0Osmond’s0per
sonal0assets0from0the0assets0of0Simple0Treats,0 Inc.0 This0 will0 hel
p0 Osmond,0 investors,0 and
