for questions that relate to the laws, practices, and products of accounting. Please note that questions about accounting that are academic or have no bearing on personal finance are off-topic here.

learn more… | top users | synonyms

0
votes
0answers
2 views

How to journal an expenditure that provided no value

Let's say I buy a logo on a service like Fiverr for $5.50. The logo doesn't meet my needs, but I'm still obligated to pay the graphic artist for services rendered. If the logo had met my needs, I'd ...
1
vote
1answer
41 views

Managing an Account with Multiple Categories

Assume I setup and account that has multiple categories, say I have 1000 to invest, and I do something like this: 300 Kid 1 college 300 Kid 2 college 150 Emergency Fund 250 New House It is ...
1
vote
0answers
26 views

Does GAAP have rules for skipping a scheduled payment to avoid penalty on future payment [closed]

The purchase contract on a business has a set schedule of payments and if a payment is not paid timely, a late fee penalty is required, and if not paid within a set time period, interest is to be ...
2
votes
3answers
93 views

Does a company in the UK have to pay taxes on betting winnings?

Betting in the UK is taxed on the company level so the bettor doesn't have to pay taxes on his winnings. I have a company in the UK whose only objective is to trade on sports betting. Will I have to ...
0
votes
0answers
10 views

Quickbooks credit card reconciliation

When I put a payment into Quickbooks through the enter bills section and then pay it, when I go to reconcile the account the payment does not show up. Why would this be and how can it be placed in the ...
1
vote
0answers
27 views

Avoiding tax complexities of MLPs

I would like to invest in master limited partnerships (MLPs) for their high yield, but would like to avoid their tax complexities. If I buy exposure to MLPs through an ETF or mutual fund, will that ...
1
vote
0answers
21 views

Payments for extra work in a partnership [migrated]

Suppose two people are in a partnership (e.g., via an LLC) for an online web services business. The two generally share the work of running the business. Occasionally, a request will be made for ...
1
vote
0answers
85 views

Salary vs Dividend: is this example wrong?

I saw a link to a great article in old (2012) question. http://vereecke.ca/index.php/articles/will-that-be-salary-or-dividends/ I've tried understanding the article well, but I think that the author ...
2
votes
1answer
41 views

Switching Accountants - who does the audit review for past years?

If I switch my accountants, and the later CRA audits my returns (that were done with the previous accountant), who will be responsible for helping me with the audit: the new accountant or the previous ...
2
votes
1answer
73 views

How does Walmart account their expired food [closed]

Businesses such as Walmart makes tons of short-lived fresh food everyday (Bread, Coffee..etc) and at the end of the day there's so much food left unsold how do they do accounting for those food? Is ...
1
vote
1answer
70 views

Where should I start my LLC?

I want to release an iPhone app to the App Store and want to put my company name as the app's "seller" field. I was thinking of starting an LLC because I'm working alone and want to hire a developer. ...
2
votes
1answer
61 views

Do I need to pay US tax if my father puts half of his company (in the Dominican Republic) in my name?

I am a permanent resident of the USA (a green card holder) eligible to apply for citizenship, but I do not know how convenient this might be in my situation. My father has a company in the Dominican ...
2
votes
1answer
145 views

Why doesn't change in accounts receivable on balance sheet match cash flow statement?

If we take a look at the balance sheet for Microsoft, I see Net Receivables as 21,485,000 [2014] and 19,118,000 [2013] On the cash flow statement, I see Changes In Accounts Receivables as ...
0
votes
1answer
71 views

Does CAPEX include intangible assets?

CAPEX is defined here as funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. The video states that "the value of the capital ...
5
votes
3answers
265 views

What is the difference between equity and assets?

I am (going to be) using GNU Cash, which uses the double-entry method; I use it for personal finance. Reading various tutorials for GNU cash, it lists 5 types of accounts: income, expense, assets, ...
0
votes
1answer
38 views

Must tangible assets be depreciated or can I take a one-time expense? [closed]

Let's say my company purchases some tangible/fixed/long-term asset. Am I required to take a prorated depreciation expense each year for the life of the asset? Do I have the option to report the ...
-1
votes
1answer
31 views

Balance sheets & bad debt accounts [closed]

I have a confusion as to whether bad debt accounts are factored into the accounts receivable of a company's balance sheet? To clarify/illustrate my question, If a company is expecting $3000 in ...
0
votes
2answers
110 views

Simplified version of double-entry bookkeeping for personal and business finance?

I currently manage my personal finances based on a single-entry bookkeeping. It turns out that it doesn't fit my needs in the long run. After learning about double-entry bookkeeping and researching ...
0
votes
2answers
71 views

Could somebody explain Wikipedia's VAT example calculation to me?

Wikipedia example here. I could not understand why in this example ("With a value-added tax" subsection) the government charges 0.10 = $1 × 10%, but not 0.11 = $1.1 × 10% The manufacturer spends ...
1
vote
1answer
193 views

Basic bookkeeping account entries for a house purchase and mortgage?

I borrow 200,000 to purchase a house worth 250,000, putting down 50,000 of my own. The borrowing is at 5% over 30 years. What are the basic double-entry bookkeeping entries I must make to record this ...
2
votes
0answers
72 views

How do you Record Revenue from ads?

I have a website with an increasing traffic so I decided to make it as a business and add ads into the website. I'm currently in the process of registering my business and I don't get how would I ...
2
votes
1answer
66 views

How do I record monetary advances and money spent thereof in personal accounting?

I have recently (i.e. from the beginning of 2015) started tracking my personal finances with GNUCash, without any previous experience in accounting. While the interface is mostly intuitive (thanks to ...
1
vote
1answer
76 views

Considerations for switching accountants?

I had a bad experience with my accountant this year. Normally things have gone smoothly enough. But this year was complicated, and I didn't help myself by doing some stuff (not relevant here) to make ...
0
votes
0answers
15 views

How to book past year's transaction, performed in the current year?

I have a small business. I contributed $1000 towards SEP IRA for year 2014. However, the transaction was done in January of 2015 using the retained earnings of 2014. Obviously, this money is tax ...
0
votes
0answers
84 views

What is the difference between paid-up capital and subscribed capital?

I know what paid-up capital is. It is not clear to me whether it is same as subscribed share capital. Example: What is[sic] Scheduled Commercial Banks? These are banks listed in the 2nd Schedule ...
0
votes
1answer
44 views

What's the difference between a company's after-tax profit and their sales/revenue?

Two fundamental analysis formulas have got me confused. One is the EPS (earnings per share) and the other is P/S (price/sales ratio). If I understand the formulas correctly, EPS is calculated by ...
0
votes
1answer
41 views

Do proceeds from a sale count as income for the decedent or the estate when agreement is prior to death and payment is after?

This is a question about US taxes and accounting. The documentation I've read says that if an estate is run on a cash accounting system, then any income received after the decedent's date of death is ...
6
votes
4answers
544 views

Why use accounting software like Quickbooks instead of Excel spreadsheets?

Some friends and I are starting a small landscaping cooperative, and are thinking about how we will manage accounting. Places we've worked in the past have used Excel spreadsheets to manage all of ...
2
votes
1answer
191 views

How should accounting software be categorized in terms of business expense?

I'm using online payroll software to manage payroll for employees and contractors. What category would the expense of this software fall under?
0
votes
0answers
35 views

What is equity capital?

Is equity capital the same as stockholders equity, if not then what is equity capital and how do we work it out from a balance sheet?
0
votes
1answer
75 views

In double entry book keeping terminology, what is the term or expression for when a journal entry both debits and credits the same account?

I configure point of sale software and thus deal with my clients' accounting people. I need to know how to properly express to them this situation, when they describe it. Thank you.
5
votes
2answers
133 views

How do I account for 100 percent vendor discounts in GnuCash 2.6.5

Consider this simple scenario, where I am running the accounts for a small business. No need to get into fancy standards (e.g. GAAP). A vendor sends my company a bill for $100. The work is complete ...
0
votes
2answers
89 views

What is the purpose of marking-to-market a futures contract?

Suppose I enter into a long futures contract to buy 1 ounce of gold at 1200$/ounce for delivery in May 2015. Between now and May 2015, the market price for a similar contract will certainly vary. Do ...
6
votes
5answers
1k views

How to divide up utilities when one tenant's rent includes utilities, but others' don't?

This is an extension of my question asked here. Four roommates are living together. Two are co-tenants, who hold the lease, and the other two sublet from the co-tenants and pay rent and utilities to ...
1
vote
0answers
64 views

Preference shares vs. common shares and overall holding structure for a public company?

I am trying to understand the overall holding picture for a listed company — like, there can be preference shares, common shares (free float), etc. My questions are: It would be really great ...
2
votes
0answers
176 views

How to divide up utilities amongst tenants? [duplicate]

Let's say I have two tenants who share my apartment with me. It is agreed that utilities shall be divided equally amongst us. However, one tenant has, as part of his lease, a stipulation that all ...
0
votes
0answers
54 views

How to correctly track a covered call write (sell to open) in double-entry accounting?

I recently started using gnucash for personal accounting, but I guess this question doesn't depend on the software. I sold a covered call, and I'm not sure how to keep track of that in the ...
1
vote
1answer
150 views

How can I import customers and invoices from a previous year's Gnucash file?

I've been using Gnucash for the past year for small business accounting as a self-employed contractor. I've read that it's a good practice to create a new file for each year. Now that 2014 has ...
0
votes
0answers
37 views

Name of Balance Term

What is the balance term for each condition below, which is updated realtime: When it only consist of actual money (actual income and expense) a company has (excluding projections) When it also ...
0
votes
1answer
765 views

What is the difference between a creditor and a lender? [closed]

Can you share specific examples? Also, when are they the same entity and when are they different?
0
votes
1answer
74 views

Rationale behind discount bonds?

I'm trying to understand if my rationale behind discount bonds is correct. Let's say Company X issues a 2 year $1000 bond at 5%, market interest rate is 10%. Because the coupon rate < the market ...
4
votes
1answer
116 views

The formula equivalent of EBITDA for personal finance?

I am considering the idea of trying to run my household finance more like a business and I am looking for formulas to gauge household financial health. I am running into issues with EBITDA for ...
2
votes
2answers
183 views

How To Record Income As An Affiliate ( UK )

I'm registered as self employed and I now want to start a blog where I can use adverts and amazon to make a little extra cash. Now I know that I have to record anything I earn as an income but I have ...
0
votes
1answer
98 views

Working Capital Definition [closed]

I invest in receivables (factoring) and I'm trying to determine what obligors are a good and not deteriorating credit risk. Part of this involves assessing obligors that are extending their days ...
2
votes
1answer
473 views

How to resolve imbalances and orphan transactions in Gnucash?

I am a new Gcash user. I Installed Gcash and imported couple statements from my bank. It is all good except that I now have huge imbalances. And I do not know how to handle this. I looked around the ...
6
votes
2answers
184 views

I started some small businesses but need help figuring out taxes. Should I hire a CPA?

I've got a couple of small businesses I run. I started them in the last couple of months. I feel lost when it comes to my taxes. I know I should be paying something, but I'm not real sure where to ...
3
votes
1answer
199 views

What is the difference between an Independent Financial Advisor (IFA) and an Accountant?

I'm looking for some advice on various small personal financial matters relating to pension, salary, taxation etc. I've been given a personal recommendation for an accountant, but looking at their ...
3
votes
2answers
229 views

How should I record invoices in foreign currency in GNUCash?

I'm a Canadian living in Canada and I've recently started a new contract with a client in the US. My previous contract specified payment in CAD while my new contract is in USD. I invoice once a ...
1
vote
1answer
371 views

What account should passport renewal expenses go into?

I am trying to appropriately name an account for these types of "official" fees. The fee doesn't really relate to a particular project, nor a normal type of expense.
1
vote
1answer
89 views

What would be the appropriate account for written off loans to friends and family?

In the past I have lent some money to friends and family, which I have not gotten back. I don't want to ask them for the cash, but I do want to clean up my accounts. How would I record this in my ...