For accounting purposes, business transactions should be kept separate from the personal transactions of the owners of the business.

Question

Quizplus · Accepted Answer

Mixing personal and business transactions can make it difficult to accurately track and analyze the financial performance of the business, and can also create issues with taxation and legal liabilities. It is important to keep these transactions separate and maintain clear records for each.

For Accounting Purposes, Business Transactions Should Be Kept Separate from the Personal