The following is an excerpt from a conversation between two employees of Linquest Technologies, Don Corbet and Rita Shevlin Don is the accounts payable clerk, and Rita is the cashier Don Rita, could I get your opinion on something Rita Sure, Don Don Do you know Margaret, the fixed assets clerk Rita...

You should explain to Don and Rita that it is acceptable to maintain two sets of records for tax and ...

The following is an excerpt from a conversation between two employees of Linquest Technologies, Don Corbet and

Question:

The following is an excerpt from a conversation between two employees of Linquest Technologies, Don Corbet and Rita Shevlin. Don is the clerk, and Rita is the cashier.
Don: Rita, could I get your opinion on something?
Rita: Sure, Don.
Don: Do you know Margaret, the fixed assets clerk?
Rita: I know who she is, but I don’t know her real well. Why?
Don: Well, I was talking to her at lunch last Tuesday about how she liked her job, etc. You know the usual . and she mentioned something about having to keep two sets of books . one for taxes and one for the financial statements. That can’t be good accounting, can it? What do you think?
Rita: Two sets of books? It doesn’t sound right.
Don: It doesn’t seem right to me either. I was always taught that you had to use generally accepted accounting principles. How can there be two sets of books? What could be the difference between the two?
How would you respond to Rita and Don if you were Margaret?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...