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evablogger [386]
3 years ago
15

The owner of Shady Grove Company has the bookkeeper write company checks to pay for his personal items. This violates __________

.
Business
1 answer:
Rainbow [258]3 years ago
7 0

Answer:

The separate-entity assumption

Explanation:

The separate-entity assumption is a principal in accounting according to which the financial transactions of a business and the personal expenses of the owners is to kept separate from each other. The expenses derived solely for the business is only to be counted under the expenses of the company. Inclusion of any personal expenses of the owner or any partner of the business is prohibited under this principal.  

In the given excerpt, the owner of Shady Grove Company had violated the separate-entity assumption by including the expenses of his personal items under the name of the Company.

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Journal to record accrued interest by  Davenport Company

Date                          Accounts Titles                          Debit         Credit

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A project's operating cash flow will increase when the: Group of answer choices depreciation expense increases. interest expense
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While cumulative depreciation is the overall amount of wear and tear to date, depreciation expense is the amount that a company's assets are depreciated for a specific period (such as a quarter or the year). Accumulated depreciation is neither an expense, nor is it a depreciation expense.

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