Possible bug with Cash Flow Report

[James Kerr]

On Friday 06 November 2009 Anthony Nelson wrote:

> Ok, I think I get it.  Please allow me one follow up.  I believe
> what you and others are says is that:
>
> 1) There is no bug,  the cash flow statement is reporting what it
> should 2) The transactions were properly recorded
>
> The question boils down to: Is it your opinion that everything is
> fine with this transaction, or should I have recorded it
> differently.
>

I'm assuming that the credit card payment is shown in the Cash Flow 
Statement as an outflow of cash. If so, then I don't think there is 
any bug and that what you did is, I think, acceptable. 

In a larger company, a personal expense charged to the company and the 
decision to apply the resulting receivable against the loan from 
shareholder may have been recorded separately. That means that the 
company would have offset the credit card charge against a receivable 
from you and then made a separate transaction clearing the receivable 
and reducing the loan from shareholder. (The first is generally an 
administrative matter, the second often involves legal issues.)

Jim