Cash paid to stockholders by the business of a corporation and used for personal expenses, should...

Question

Question

Answer 1

Answer #1

Answer: FALSE

Explanation:

A Business expense is costs incurred in the course of business.

So personal expense should not be treated as an expense of the business.

Answer 2

Similar Homework Help Questions

Dividends paid to stockholders are a business expense. True or False? Question 6 2 pts Dividends...

Dividends paid to stockholders are a business expense. True or False? Question 6 2 pts Dividends paid to stockholders are a business expense. True O False
22. For the current year, Al Johnson used his personal car for both business and personal...

22. For the current year, Al Johnson used his personal car for both business and personal purposes. He drove 18,000 miles in the car during the year: 10,000 miles were for business-related purposes and 8,000 miles were for personal purposes. He incurred the following car expenses during the year: Amount Expense Gas $7,900 900 Maintenance Repairs and depreciation Car washes Totale nton 900 500 $10,200 nobo Based on this information, what part of the above car expenses is deductible as...
14) For a cash method taxpayer, expenses paid with borrowed funds are deductible in the year...

14) For a cash method taxpayer, expenses paid with borrowed funds are deductible in the year in which the loan is repaid. True or False 15) In general, a CPA on the cash basis method will never have a bad debt deduction. True or False 16) A cash-basis taxpayer may deduct prepaid business expenses currently regardless of the period of time to which the expenses relate. True or False 17) A cash-basis taxpayer must always include checks in income in...

The accrual basis of accounting recognizes expenses when cash is paid. True or False? Question 13...

The accrual basis of accounting recognizes expenses when cash is paid. True or False? Question 13 2 pts The accrual basis of accounting recognizes expenses when cash is paid. O True O False
A corporation: O A. is owned by stockholders. O B. has limited risk to stockholders. O...

A corporation: O A. is owned by stockholders. O B. has limited risk to stockholders. O c. is legally separate from its owners. O D. All of the above. Which of the following would result if the owner withdrew cash from the business? O A. Cash would increase and Withdrawals would increase O B. Cash would increase and Capital would decrease OC. Cash would decrease and Withdrawals would increase. OD. An investment by the owner is not a business transaction....
a b. C d. Expenses paid in cash before they are used or consumed. The difference...

a b. C d. Expenses paid in cash before they are used or consumed. The difference between the cost of a depreciable asset and its related accumulated depreciation. A list of accounts and their balances after all adjustments have been made. Entries made at the end of an accounting period to ensure that the revenue recognition and expense recognition principles are followed. Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent...

9 and 10 9. Beatrice Company received $4,000 in cash revenues, paid cash expenses of $3,450,...

9 and 10 9. Beatrice Company received $4,000 in cash revenues, paid cash expenses of $3,450, and paid a cash dividend of $300 to its stockholders. It engaged in no other transactions during the period. Which of the following statements is true regarding the classification of these activities in Beatrice's Statement of Cash Flows? A. $4,000 received in cash revenues is a financing activity. B. $3,450 paid in cash expenses is an operating activity. C. $300 in cash paid for...
The residual dividend theory suggests that dividends should be paid to stockholders first and then what...

The residual dividend theory suggests that dividends should be paid to stockholders first and then what is left can be reinvested by the firm. True. False.
personal bank account to an account to be used for the business in exchange for common...

personal bank account to an account to be used for the business in exchange for common stock, $31,500 Paid rent on office and equipment for b. Amount of total expenses recorded in the ledger S 2 3 Purchased supplies on account, $2,200 6 Paid automobile expenses (including miscellaneous expenses, $460 47.450.00 Oct 1 Pre

13) A taxpayer may use a cash basis for one business and an accrual basis for...

13) A taxpayer may use a cash basis for one business and an accrual basis for another business. True or False 14) For a cash method taxpayer, expenses paid with borrowed funds are deductible in the year in which the loan is repaid. True or False 15) In general, a CPA on the cash basis method will never have a bad debt deduction. True or False 16) A cash-basis taxpayer may deduct prepaid business expenses currently regardless of the period...