McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 52

Jimmy is a sole proprietor of a small dry cleaning business. This month Jimmy paid for his groceries by writing checks from the checking account dedicated to the dry cleaning business. Why do you suppose Jimmy is using his business checking account rather than his personal checking account to pay for personal expenditures