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What else can I help you with?
What are the reasons why business organizations are considered separate from it's owners?
The reason for this assuption is to represent a fair financial statements, that is why personal transactions of the owners should not be included.
What three habits should you create while reading a business transaction?
I am very happy when Iread business transactions for the following reasons: 1-forbetter performance of business plans 2-for preparing financial stetements 3-for preparing financial reports.
What is the importance of the entity concept in accounting?
The importance of the entity concept in accounting is that you are able to determine the financial status of a business. The entity concept demands that the business and the owners should be treated as separate entities.
When should posting of journal entries be done?
Journal entry should be made when you need to acquire information about specific business transactions.All the transactions should be recorded based on receipts or the bills. This will help to check authenticity of each journal entries. This further makes auditing easy.
Your capital is your major asset and so should be shownas an asset on the balance sheet?
It is the basic concept of accounting that business is a separate entity from it's owner. So when owner invest capital in business its now the liability of the business to return back that amount of capital to owner of business at the time of liquidation of the company that's why it is not asset but liability of the company and shown under liability side.
What are the reasons why business organizations are considered separate from it's owners?
The reason for this assuption is to represent a fair financial statements, that is why personal transactions of the owners should not be included.
Who argued that government should stay out of private business?
John Stuart Mill argued that government should stay out of private business.
What is the business entity convention?
Business entity convention The convention that holds that, for accounting purposes, the business and its owner(s) are treated as quite separate and distinct. The business entity concept provides that the accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. This means that the owner of a business should not place any personal assets on the business balance sheet. The balance sheet of the business must reflect the financial position of the business alone. Also, when transactions of the business are recorded, any personal expenditures of the owner are charged to the owner and are not allowed to affect the operating results of the business. Business entity convention The convention that holds that, for accounting purposes, the business and its owner(s) are treated as quite separate and distinct. The business entity concept provides that the accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. This means that the owner of a business should not place any personal assets on the business balance sheet. The balance sheet of the business must reflect the financial position of the business alone. Also, when transactions of the business are recorded, any personal expenditures of the owner are charged to the owner and are not allowed to affect the operating results of the business.
When should the KYC process be performed?
The KYC process should be performed before establishing a business relationship or conducting financial transactions with a customer.
Can I use personal checks for a business account?
No, personal checks should not be used for a business account. It is recommended to use business checks for business transactions to maintain proper financial records and separation between personal and business finances.
Does a single-member LLC need to have a business bank account?
Yes, a single-member LLC should have a separate business bank account to keep personal and business finances separate for legal and financial reasons.
A city has a shortage of parking spaces for a businessShould the city build a new parking garage or leave it up to the private sector?
This city should build a new parking garage because it should not be up to the private sector to do so. Private Sector - The part of the economy that involves the transactions of individuals and businesses
Should small businesses use private loans?
Small businesses should use private loans if necessary for the business to succeed, I would contact your bank for options in private loans, as well as other loan options.
For accounting purposes the business entity should be considered separate from its owners if the entity is a?
a corporation, proprietorship or a partnership.
What should government do if a large private business goes bankrupt which would affect a large number of ordinary innocent people?
Depends on the Government. If the governed nation has an economy based on a free market then then the government should do nothing. Any private business is subject to the free market.
Should I use my business credit card when I have travel for business?
You may want to use one for your business in order to separate your personal and business finances, so as to not confuse the two. It will be good for your business to have it's own card.
How can you legally rent your house to your business?
To legally rent your house to your business, you should create a formal rental agreement outlining the terms of the rental, such as rent amount and duration. It's important to keep the rental agreement separate from any personal transactions to maintain legal clarity and compliance. Additionally, consult with a legal professional or accountant to ensure you are following all relevant laws and regulations.
