The business credit card is being used for business and personal expenses, list the business then personal expenses from the March credit card statement. Address the accounting and ethical reason for this separation of expenses.
What will be an ideal response?
= 712.51
Any personal use of a business credit card is not recommended; the frequency of these charges should be kept at a minimum. The business entity concept should be applied. Personal expenses are not business expenses; personal expenses should not be reflected on the income statement of DM Yard Services, nor deducted as an expense on Dave Michaels’s income tax return. Personal expenses are properly debited to the draw account. Students respond that there should be a clear cut non-personal use of the business credit card; the reality from my clients is the above co-mingling of charges.
You might also like to view...
Why the residual value of equipment is relevant when considering the replacement of equipment?
Russian-born native Natalya ____ to the United States
A) emigrated B) immigrated C) emmigrated
Your author makes the statement that "Successful project managers must operate on the boundaries." Explain what is meant by this statement and provide an example
What will be an ideal response?
Charles, a 62-year-old army veteran, buys preferred stocks in companies. Although the returns on these stocks are not high, he is more than happy with his investments as they bring a steady flow of money that helps him in his sustenance. Charles's investment approach is an example of the strategy of _____.
A. buying and holding B. value investing C. investing for growth D. investing for income