Question

Discussion in Financial Accounting

Imagine that you have run your own carpet cleaning business for 23 years. During that time, Alice has been your trusted bookkeeper, like a family member. She is such a hard worker that, despite your urging, Alice has refused to take a vacation during this 30 year time-frame. As a business owner, should you be concerned or pleased about her lack of vacations? Explain your answer.

Answer 1

in this scenario Alice is working for the business as a business bookkeeper .there are many principles in financial accounting that you need to consider when analysing this scenario.

Business entity concept -its states that business is separate from its owner and must treat business as a separate entity.transaction associated with a business must be separately recorded from those of its owner or other businesses.so there must not be personal feeling involved in this,when it comes to vacation.

there are some more factors that you need to consider,as a business owner you must motivate your workers, there are many method which you can use to do that.you can increase there pay,informal motivation,vacation.giving motivation is so important it will increase there productivity etc.