You recently got a job as a part-time supply chain accounting clerk to earn money while you attend school. Today, your employer, the owner of the business, made some purchases and instructed you to debit Office Supplies and credit Accounts Payable for the entire amount. He tells you that the invoice is for a few office supplies but mainly for some items that he needed for personal use at home. Discuss which GAAP is being violated, and the impact of this error on the financial statements of the business.

Answer rating: 100% (QA)

All Financial statements should be reported in line with Generally Accepted Accounting Principle GAA... View the full answer