The duty of loyalty, described as a duty, is the duty of a person to act in the best interests of their company, which is not to waste when the individual sees corporate opportunities for their personal benefit, avoid personal interest in transactions between the company and other parties, and keep company information private. .
The duty of loyalty that can be seen when Bata engages himself in an interested transaction for the sale of the carpet.
When prepaid insurance (or any other prepaid expense) is adjusted at year end in order to record accrued expenses, financial statements are affected in the following way:
income statement: costs increase, decreasing profits
balance sheet: assets and equity decrease
cash flow statement: cash from operating activities increases
