SOLUTION MANUAL Financial Accounting,13th Edition
k k k k
by William Thomas and Wendy M.Tietz Chapters 1 -
k k k k k k k k
12, Complete
k k
,
,Chapter 1 k
The Financial Statements
k k
EthicskCheck
(5-10kmin.)k ECk1-1
a. Objectivitykandkindependence
b. Duekcare
c. Integrity
d. Integrity
, Shortk Exercises
(10kmin.)k Sk1-1
a. Corporation,k limitedk partnersk ofk ak Limited-
liabilitykpartnershipk(LLP)kandkkLimited-
liabilitykkcompanyk(LLC).kIfkanykofkthesekbusinesseskfailskandkcan
notkpaykitskliabilities,kcreditorskcannotkforcekthekownersktokpayk
thekbusiness’skdebtskfromkthekowners’kpersonalkassets.kCreditor
skcankgokafterkthekgeneralkpartnerkofkaklimitedkliabilitykpartners
hip.
b. Proprietorship.kTherekiskaksinglekownerkofkthekbusiness,ksoktheko
wnerkiskanswerablektoknokotherkowner.
c. Partnership.kIfkthekpartnershipkfailskandkcannotkpaykitskliabilitie
s,kcreditorskcankforcekthekpartnersktokpaykthekbusiness’sk debtsk
fromk theirk personalk assets.k Akpartnershipkaffordskmorekprote
ctionkforkcreditorskthankakproprietorshipkbecausektherekarektwok
orkmorekownersktoksharekthiskliability.
(5kmin.)k Sk1-2
1. Thek entityk assumptionk applies.
2. ApplicationkofkthekentitykassumptionkwillkseparatekOsmond’skp
ersonalkassetskfromkthekassetskofkSimplekTreats,k Inc.k Thisk willk
helpk Osmond,k investors,k and
k k k k
by William Thomas and Wendy M.Tietz Chapters 1 -
k k k k k k k k
12, Complete
k k
,
,Chapter 1 k
The Financial Statements
k k
EthicskCheck
(5-10kmin.)k ECk1-1
a. Objectivitykandkindependence
b. Duekcare
c. Integrity
d. Integrity
, Shortk Exercises
(10kmin.)k Sk1-1
a. Corporation,k limitedk partnersk ofk ak Limited-
liabilitykpartnershipk(LLP)kandkkLimited-
liabilitykkcompanyk(LLC).kIfkanykofkthesekbusinesseskfailskandkcan
notkpaykitskliabilities,kcreditorskcannotkforcekthekownersktokpayk
thekbusiness’skdebtskfromkthekowners’kpersonalkassets.kCreditor
skcankgokafterkthekgeneralkpartnerkofkaklimitedkliabilitykpartners
hip.
b. Proprietorship.kTherekiskaksinglekownerkofkthekbusiness,ksoktheko
wnerkiskanswerablektoknokotherkowner.
c. Partnership.kIfkthekpartnershipkfailskandkcannotkpaykitskliabilitie
s,kcreditorskcankforcekthekpartnersktokpaykthekbusiness’sk debtsk
fromk theirk personalk assets.k Akpartnershipkaffordskmorekprote
ctionkforkcreditorskthankakproprietorshipkbecausektherekarektwok
orkmorekownersktoksharekthiskliability.
(5kmin.)k Sk1-2
1. Thek entityk assumptionk applies.
2. ApplicationkofkthekentitykassumptionkwillkseparatekOsmond’skp
ersonalkassetskfromkthekassetskofkSimplekTreats,k Inc.k Thisk willk
helpk Osmond,k investors,k and
