The following is an excerpt from a conversation between two employees of Resource Technologies, Haley Eubanks and Clay Hamon Haley is the accounts payable clerk, and Clay is the cashier Haley Clay, could I get your opinion on something Clay Sure, Haley Haley Do you know Amber, the fixed assets cler...

You should explain to Clay and Haley that it is acceptable to maintain two sets of records for tax a ...

The following is an excerpt from a conversation between two employees of Resource Technologies, Haley Eubanks and

Question:

The following is an excerpt from a conversation between two employees of Resource Technologies, Haley Eubanks and Clay Hamon. Haley is the clerk, and Clay is the cashier.
Haley: Clay, could I get your opinion on something?
Clay: Sure, Haley.
Haley: Do you know Amber, the fixed assets clerk?
Clay: I know who she is, but I don't know her real well. Why?
Haley: Well, I was talking to her at lunch last Monday 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?
Clay: Two sets of books? It doesn't sound right.
Haley: 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 can be the difference between the two? How would you respond to Clay and Haley if you were Amber?

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...