Which of the following statements is true?
A)To conserve resources, it is best if the owner uses one Checking account for both personal and business purposes
B)To maintain separation between the personal and business accounting records, the owner's personal Checking account should not be used to pay bills for the business and should not be listed in the business' Chart of Accounts
C)To maintain more consistent records, it is best if the owner maintains a separate personal Checking account, but both the owner's personal Checking and business Checking accounts are listed in the Chart of Accounts
D)None of these

Question

Quizplus · Accepted Answer

It is important to maintain separation between personal and business accounting records in order to accurately track business expenses and income. Using a personal checking account for business purposes can create confusion and make it difficult to differentiate between personal and business transactions. Therefore, it is best to not use a personal checking account to pay bills for the business and not list it in the business' Chart of Accounts.

Which of the Following Statements Is True