SOLUTION MANUAL Financial Accounting,13th Edition
by William Thomas and Wendy M.Tietz Chapters 1 -
12, Complete
,
,Chapter 1 gk
The Financial Statements
gk gk
EthicsgkCheck
(5-10gkmin.)g k ECgk1-1
a. Objectivitygkandgkindependence
b. Duegkcare
c. Integrity
d. Integrity
, Shortg k Exercises
(10gkmin.)g k Sgk1-1
a. Corporation,g k limitedg k partnersg k ofg k ag k Limited-
liabilitykp
g artnershipgk(LLP)gkandgkgkLimited-
liabilitygkgkcompanygk(LLC).gkIfgkanygkofgkthesegkbusinessesgkfailsgkandgk
cannotgkpaygkitsgkliabilities,gkcreditorsgkcannotgkforcegkthegkownersgkt
ogkpaygkthegkbusiness’sgkdebtsgkfromgkthegkowners’gkpersonalgkassets
.gkCreditorsgkcangkgogkaftergkthegkgeneralgkpartnergkofgkagklimitedgkliabi
litygkpartnership.
b. Proprietorship.gkTheregkisgkagksinglegkownergkofgkthegkbusiness,sgk ogkth
egkownergkisgkanswerablegktogknogkothergkowner.
c. Partnership.gkIfgkthegkpartnershipgkfailsgkandgkcannotgkpaygkitsgkliabili
ties,gkcreditorsgkcangkforcegkthegkpartnersgktogkpaygkthegkbusiness’sg k
debtsg k fromg k theirg k personalg k assets.g k Ap
k artnershipgkaffords g
g
k moregkprotectiongkforgkcreditorsgkthangkagkproprietorshipgkbecausegk
theregkaregktwogkorgkmoregkownersgktosgk haregkthisgkliability.
(5gkmin.)g k Sgk1-2
1. Theg k entityg k assumptiong k applies.
2. ApplicationgkofgkthegkentitygkassumptiongkwillgkseparategkOsmond’sg
k personalgkassetsgkfromgkthegkassetsgkofgkSimplegkTreats,g k Inc.g k This
g k willg k helpg k Osmond,g k investors,g k and
by William Thomas and Wendy M.Tietz Chapters 1 -
12, Complete
,
,Chapter 1 gk
The Financial Statements
gk gk
EthicsgkCheck
(5-10gkmin.)g k ECgk1-1
a. Objectivitygkandgkindependence
b. Duegkcare
c. Integrity
d. Integrity
, Shortg k Exercises
(10gkmin.)g k Sgk1-1
a. Corporation,g k limitedg k partnersg k ofg k ag k Limited-
liabilitykp
g artnershipgk(LLP)gkandgkgkLimited-
liabilitygkgkcompanygk(LLC).gkIfgkanygkofgkthesegkbusinessesgkfailsgkandgk
cannotgkpaygkitsgkliabilities,gkcreditorsgkcannotgkforcegkthegkownersgkt
ogkpaygkthegkbusiness’sgkdebtsgkfromgkthegkowners’gkpersonalgkassets
.gkCreditorsgkcangkgogkaftergkthegkgeneralgkpartnergkofgkagklimitedgkliabi
litygkpartnership.
b. Proprietorship.gkTheregkisgkagksinglegkownergkofgkthegkbusiness,sgk ogkth
egkownergkisgkanswerablegktogknogkothergkowner.
c. Partnership.gkIfgkthegkpartnershipgkfailsgkandgkcannotgkpaygkitsgkliabili
ties,gkcreditorsgkcangkforcegkthegkpartnersgktogkpaygkthegkbusiness’sg k
debtsg k fromg k theirg k personalg k assets.g k Ap
k artnershipgkaffords g
g
k moregkprotectiongkforgkcreditorsgkthangkagkproprietorshipgkbecausegk
theregkaregktwogkorgkmoregkownersgktosgk haregkthisgkliability.
(5gkmin.)g k Sgk1-2
1. Theg k entityg k assumptiong k applies.
2. ApplicationgkofgkthegkentitygkassumptiongkwillgkseparategkOsmond’sg
k personalgkassetsgkfromgkthegkassetsgkofgkSimplegkTreats,g k Inc.g k This
g k willg k helpg k Osmond,g k investors,g k and
