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Questions tagged [accounting]

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.

0
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1answer
32 views

How to enter Return of Capital in ledger-cli

Some background first: I'm using GnuCash for personal finances and am trying to get some reports from ledger-cli. The data is exported using piecash from GnuCash into a ledger file. When running ...
0
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0answers
13 views

details for getquote script used by ledger-cli [on hold]

I see in documentation that getquote script gets called for the download of prices. I have a few questions (answering which might be helpful and put on the wiki): where is the script expected to be? ...
0
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1answer
46 views

Does ledger-cli support FIFO principle for selling stock lots?

I could not find the detailed information about lot tracking in ledger and would appreciate if someone took the time to make it explicit. If I have two purchase transactions for a fund, at 100 units ...
1
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3answers
153 views

Accountant won't send an invoice without a PO

I've outsourced accounting including AP, AR, Rev Rec, etc. I have an unbilled revenue problem, where my accountant won't send invoices unless we have a PO! This is a problem because even though I ...
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0answers
64 views

How to declare small business income before bank account is open

I have incorporated a company in December last year, and since then we started making money but had no bank account. Because of the company structure, one of the shareholders who owned more than 25% ...
1
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1answer
53 views

Should Balance Sheet short term notes payable include interest

Super simple example: You take a loan out in January of $50,000. $10,000 principal + $1,000 interest of the loan will be due back over the course of the 12 months ending the year If you were making ...
0
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1answer
190 views

How do I find a good accountant?

I'm wondering what types of resources are available for finding a good accountant, both in terms of assessing the quality of the services they provide as well as the cost of their services in ...
1
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0answers
78 views

How to categorize trust account payments?

I have two accounts - a trust account and an operating account. When I process credit card payments, they go through an operating account and then are transferred to the trust account. These payments ...
0
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0answers
48 views

Tracking GST/VAT from invoice to payment

Contrived example: Alice and Bob both work for Charlie, who runs a lawnmowing service. Charlie bills $100 plus 10% GST/VAT for the job. If Alice does the job, she gets $50 - if Bob does the job, he ...
3
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0answers
81 views

Accounting for monthly vested stock options as compenstation in GnuCash

I am working for a company that has recently gone public. Now I see a monthly accumulation of options vesting every month. I would like to account for these options as compensation in my accounts. ...
1
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1answer
256 views

Closing company, what do to with last amount of funds?

So the business is about to be shut down and there is a little bit of funds left over in the business bank account which I do not want/need. According to https://www.gov.uk/strike-off-your-company-...
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1answer
52 views

Which term describes fraudulently recording an asset more than once?

Imagine someone was working out how much my company was worth, and had tallied up the value of some machines that were in one of my factories, but then I move the machines to another factory (before ...
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5answers
178 views

Why isn't the retained earnings of a public company always distributed back to the shareholders?

Shareholders own a public company, so why shouldn't all of a company's income be distributed back to them? Why are dividends (if any) just a small fraction of a company's retained earnings?
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1answer
42 views

How to properly document owner investment into business

Say you have a new business and want to invest your personal income into the business to start. Say you initially just invest $25 to satisfy the bank's requirement for a new account, and say you ...
1
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1answer
88 views

Why only stockholder equity in the well-known accounting equation?

Assets = liabilities + stockholders' equity. Isn't this an oversimplification? The (traded) company may have raised money through stock, but maybe it also issued bonds, has profit this year, etc. ...
1
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1answer
41 views

What's the correct way to show a credit or discount on an invoice or order summary? [closed]

Is there a standardized way to express discounts or credits in an order summary? Example... Sub total: $20 Discount: -$10 Total: $10 I've seen discounts expressed as -$10, $-10, ($10), and +$...
1
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1answer
111 views

Accounting Question - Combining Vertical Analysis with Horizontal Analysis of financial statements?

Firstly I understand the concept of vertical analysis (representing line items as percentage of either total asset or revenue), and horizontal analysis (calculating the year-on-year changes or %...
1
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1answer
94 views

How do I calculate annual salary in case of salary split in a single month?

I am building a payroll system. My problem is if the employee's salary changes twice or thrice in a same month. If the: 1st period is x 2nd period is y then can I say annual income from 1st period ...
3
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3answers
146 views

Why Present Value and not Future Value?

This is a question in an online finance lesson, and I know what they want for the answer. But I'm not at all a novice at financial matters, so in my mind, I would do this differently. The question ...
0
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1answer
61 views

How should I charge a personal Bank Account for a Business transaction? (UK)

I am currently performing some ongoing work for a Sole Trader, where a monthly Direct Debit has been set up for the monthly fees. The Direct Debit was set up with their Business Account. Upon each ...
0
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1answer
104 views

How do I record a not-fully-paid expense?

I bought a pair of eyeglasses for $5 from a friend. I only paid to him $4 however as I didn't have enough cash then, so that means I owe him $1. Today I paid off the remaining $1. How should I record ...
1
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3answers
219 views

Why do the balance sheets of some large firms not balance?

I'm working my way through some accounting textbook and struggling to understand why some balance sheets on Yahoo Finance don't balance, as in: total assets - total liabilities != total shareholders ...
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0answers
201 views

Gnucash vs QuickBooks for both personal and business account

I'm considering keeping track of both personal and business accounts. I'm an old user of Gnu cash and I think I could manage with it. What would be the benefit to swapping to a new cloud accounting ...
1
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1answer
70 views

What happens to the initial shares after opening a LTD company?

I have just opened my first LTD company in the UK, and I am trying to understand the way one goes about it. Being a self taught person I have been trying to understand how it works by reading .GOV ...
1
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3answers
211 views

In double-entry book keeping, how should I track planned expenses

So, I'm working on getting a bit better at managing my household finances and am currently working to learn double-entry bookkeeping. One thing I need to separate out and track a little better is ...
2
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0answers
95 views

What does “going concern” mean?

A local politician is spreading demeaning comments about a company that has its accounts done using a “going concern” basis. My understanding is that this just means that it is assumed that the ...
1
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2answers
183 views

Projected Benefit Obligation vs Accumulated Benefit Obligation

I am looking at an annual report from a company, with the goal being to assess the financial standing of their pension plan. I have come across a chart that outlines the companies pension liabilites, ...
4
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3answers
644 views

Am I being fair to my partner, or will she lose money?

My partner and I both have good degrees, and should be able to figure out simple arithmetic, but ... We work through our own company, which we share equally. I purchased an item which I will use for ...
2
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2answers
215 views

Why do debits/credits increase/decrease assets/revenues/expenses?

I'm taking an accounting course and am finding that I don't understand exactly why "A credit decreases assets, such as inventory", for example. I understand that selling creates a decrease in assets. ...
3
votes
1answer
70 views

Assigning transactions to projects in Ledger?

I find I really want to add an additional, orthogonal layer to the account hierarchy. Quicken and Quickbooks lets you do this, but I'm not sure what the best way is in Ledger. I wish I could do ...
1
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0answers
56 views

Security Analysis (Ben Graham): LIFO question

I'm currently reading/studying Benjamin Graham's work in Security Analysis (1951 edition) on page 112 & 113 he demonstrates the difference between FIFO and LIFO. Table 10 shows the difference ...
1
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1answer
68 views

Is there any resource that provides a list of the most used/common components of the different statements (e.g. balance sheet) of an annual report? [closed]

I am looking for a resource that provides a list of a "perfect": statement of financial position (balance sheet) statement of earnings statement of cash flow containing components (e.g. for the ...
2
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1answer
75 views

Expense lower due to reimbursement. How to put in administration?

I only recently started to document my financial administration properly. Before, I had an Excel file with all transactions of my bank account (and a separate one for my savings account). Recently I ...
0
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1answer
140 views

How to enter loans made, loans received, and capital contributions in GnuCash?

I just started using GnuCash to keep track of my personal expenses and to do the books in my business. I have no accounting experience, but so far it's pretty simple. I've entered the balances on my ...
1
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1answer
187 views

Non-Profit Accounting Boy Scouts won't fully disclose event budget [closed]

I'm extremely puzzled why the local Boy Scout council won't / can't disclose the budget of a recent 4 day day camp for cub scouts. Several parents have asked how our $100 / scout camp fee was spent. ...
1
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1answer
108 views

How to mark an invoice as bad debt to show as business expense

I have several invoices I've billed clients, and they have never paid. How would I label or categorize the invoice, so that it shows as a business "bad debt", and thus go as an expense on my P&L ...
3
votes
1answer
225 views

What paperwork is needed when receiving salary through the cryptocurrencies?

Supposedly I got a short-term software engineering remote contract which was agreed to be paid by the cryptocurrencies or tokens on the task-basis (e.g. receiving a certain amount of EOS tokens for ...
1
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1answer
93 views

Terminology question about chart of accounts, general ledger [closed]

I'm trying to learn the correct terminology for the place where I see ALL the "accounts" AND their balances in an accounting app. I use QuickBooks and if I want to see all of this, I click "Chart of ...
4
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2answers
429 views

Can a IT Ltd company gamble and claim the losses as an expense?

As a UK Ltd company is it legally expected that an IT company might bet the companies money and then claim the losses as an expense against that tax year?
0
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2answers
154 views

How to track multiple savings in a single bank account with double-entry accounting

I have multiple savings that I want to track, eg - new car, vacation, etc. I'm storing all the money for those in a single bank account. I'm not sure how to track this via double-entry bookkeeping. ...
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1answer
585 views

How to find net income/loss of a company based on equity along with owner's investment/withdrawals? [closed]

We know that net income/loss is found by this equation: Net income/loss = Revenues - Expenses But what if both revenue and expense statements are unknown? I have the following information of the ...
0
votes
1answer
355 views

Does Capital Expenditure include acquiring business? [closed]

I got curious if CAPEX includes acquiring other businesses. Thank you so much for reading it and have a good day!
1
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0answers
44 views

How to account for inventory returns to wholesaler?

USA 2017 tax question here. My wife has closed out her sole-proprietorship retail business last year, and as her arm chair accountant it falls to me to figure out her gains/losses. She was able to ...
45
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4answers
12k views

How to teach personal accounting to an 8-year-old

I try to teach my 8 year old daughter the basics of finance. She has some her own money (partly in a wallet, partly in a piggy-bank). Some time ago, she threw a short tantrum about "someone stealing ...
3
votes
1answer
64 views

Should ledger entries reflect actual bank charges, orders, or totals?

I recently purchased a few things on Amazon, but they split the items into multiple charges and orders: Order 1: $40, 2 items Order 2: $50, 1 item Order 3: $250, 5 items Charge 1: $40, Order 1 ...
2
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5answers
1k views

Should tax refunds be debited from expense or income accounts?

I've been using Ledger to keep track of my finances. A typical income entry looks like this: 2018-01-05 * My Company Assets:Cash:Checking 1,000 USD Expenses:Taxes:Federal:...
4
votes
4answers
2k views

Is the blockchain similar to double-entry book-keeping?

As far as I know, blockchains keeps transaction records from the beginning of time. This lets the blockchain retain a history of traceable transactions so it can maintain validity. Double-entry book-...
37
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2answers
6k views

What does “gold reserves” on a gold mining company's balance sheet mean?

From a Reuters article: On Wednesday, [Newmont Mining Corp] reported gold reserves of 68.5 million ounces for 2017, unchanged from 2016, as it replaced reserves through exploration, projects, ...
1
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1answer
272 views

Business Accounting and Reimbursement of Expenses in a Partnership

This maybe a stupid question but I can't seem to get my mind around it. I have a partnership and we've both spent some money on start-up expenses for which we'd like to be reimbursed now that the ...
0
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1answer
202 views

Simple problem: how much cash was collected from customers? [closed]

Our professor posted this practice exam question, and I'm having trouble understanding why the answer key is correct: The balance in Accounts Receivable was $650,000 at the beginning of the year ...