I don’t understand this Accounting question and need help to study.
Follow the instructions below, make sure to use TERMINOLOGY from chapter one. I’ll attach the name of the book below. Make it easy and not sophisticated. Make it clear. USE TERMINOLGY FROM CHAPTER 1!!!
Marco Brolo is one of three partners who own and operate Silkroad Partners, a global import/export business. Marco is the partner in charge of recording partnership transactions in the accounts. On his way to work one day, Marco’s car broke down. At the repair shop, Marco learned that his car’s engine had significant damage, and it will cost over $2,000 to repair the damage. He does not have enough money in his bank account to cover the cost of the repair, and his credit cards are at their limit. This car is the only form of transportation that Marco has to get to and from work every day. he does not use his car for any business travel.
After considering his options, Marco decides to take $2,000 from the partnership for the repair, and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day.
Required (answer each question with a 4-6 sentence response using terminology in the book to aide in your response):
1. Is Marco behaving ethically? Why?
2. Who is affected by Marco’s decision and why should others care?
3. What other alternatives might Marco consider?