Have you decided to apply for a credit card? That’s nice. No doubt these cards are useful and convenient way to pay for services in daily life. It provides you finance flexibility if used sensibly. One can use it for daily purchases, for business dealings, for managing debt problems and even for charity purposes. It can also be used abroad in foreign currencies through online network facilities.
Financial Accounting, as it is commonly described, focuses on organizing the financial information of an entity into financial statements to help the decision making of people outside the organization, such as stockholders or suppliers, among others. Its objective is to historically record the economic life of an entity so that its operational development can be analyzed and interpreted by third parties. This is the international accepted definition of Financial Accounting, but one thing is its definition, and another very different one how it is applied to different economic environments.
In the current economic climate, many firms are having a hard time paying their bills and some choose to borrow from Uncle Sam by taking employee withholding taxes and using them for operating capital instead of depositing them with the United States Treasury. IRS takes a very dim view of this unorthodox practice and the interest and penalties can be severe. Many companies never get current and go under owing IRS unpaid 941 Payroll Tax. Thus the do-it-yourself “loan” becomes an unpaid debt that the corporation can’t pay if it is liquidated with no assets to pay Uncle Sam.