Profit and loss/Cash Flow reporting question

[Mike or Penny Novack]

On 5/31/2017 10:58 PM, John R. Sowden wrote:
> Couple of thoughts:
> A company cannot buy itself.  If this is a sole proprietorship, the OP 
> could take funds out to pay the note from an owner's draw account.

Perhaps we need to discuss "what jurisdiction"? But in all the ones in 
which I have ever kept books, they can. At least in the sense being 
described here.

Some of the organizations for which I keep books have a "business" 
credit card account (various people in the organizations authorized to 
use their cards for organizational purchases; I as treasurer get a joint 
statement and pay the balance (from the organizational bank account). 
That's a simple example. But for others ....

A company might have a mortgage (or other secured loan)
A company might have a line of credit.

But in terms of a more direct example of "buying itself", a corporation 
can buy back some of its outstanding stock.

Michael D Novack