Answer to Question #247393 in Economics for Igggdaa

Question

Andy is the sole owner of his firm. In June , he moves 30000 from his business checking account to his personal checking account. If Andy wants his financial records to be in accordance with GAAP , should he record the transaction or not?why?

Answer 1

If Andy wants his financial records to be in accordance with GAAP, then he should record the transaction. This concept states that the business and the person who own it are separate from each other. If an owner encounters an expense, it remains their expense and is not transferred to the business.