1) A. Teddy Bearheart works in the accounting department of Vector Enterprises. In looking over the records, a fellow employee seems to have borrowed some supplies from the inventory cupboard. Teddy Bearheart knows the employee has a chronically ill child at home and the care costs are high. What should Teddy Bearheart do?

B. Vector Enterprises's owner, Teddy Bearheart, wants to improve the balance sheet of the company by including the assets of one of his other companies. Further, he feels this is fine: Being a sole-proprietor, all of his assets are legally part of his estate, and thus, can be mixed/matched up any way he wishes. Identify the accounting principle(s) that would be broken if Vector Enterprises were to handle the transactions as the president wishes. Describe the principle(s) and explain why the proposed transactions would be in violation.