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.
475
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Based on the line item descriptions in 10Ks, how do I find the corresponding terminology under US_GAAP_2019 taxonomy analyzer?
For example, if I'm looking at the 10K for AVB and under its reconciliation of FFO, I see a description of "Gain on sale of previously depreciated real estate", how do I find the ...
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3
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136
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Mathematics and Accounting of withdrawals and deposits in a shared portfolio
My friend is a day trader and works with money, after days of research I still haven't found a method or approach to accounting our shared account.
I've came across keywords such as pooled funds, ...
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1
answer
27
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Is carryforward / NOL derived from operating income (EBIT) or taxable income (EBT)?
From Strategic CFO
A net operating loss occurs when a company’s operating expenses and
allowable tax deductions exceed its operating income for an accounting
period.
From Investopedia
A net ...
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1
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4
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119
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What does the term backlog mean
Imagine an investor is thinking about buying shares in the XYZ company which is publicly traded. He reads that the company has a backlog of $10 billion dollars in orders. Can he conclude that all ...
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43
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Net Change of Owners’ Equity [closed]
I have a question related to Net Change of Owners’ Equity especially when the company is buying back the stocks that they shared to the investor before. How the change are affecting to the assets and ...
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1
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1
answer
48
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What are Insurance Reserves on The Balance Sheet
Are insurance reserves JUST the amount the company expects (the max) amount it may have to pay in the future for claims.
Or (B) is it the cash or cash equivalent the company set aside for possible ...
- 161
0
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1
answer
63
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Accounting: Charging a Customer for a Service you had to Outsource [closed]
I run a horse boarding facility where customers pay a monthly rate for maintaining and care for the horse, as well as access to facilities such as indoor riding rings and trails. Some of the care and ...
- 103
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0
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21
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When closing books for the year, do you group by posted date or entered date? [duplicate]
Say you close your books yearly on December 31, 11:59pm. There's a transaction on a credit card that you made on Dec 29th, but it doesn't post with the bank until Jan 2nd. Would you include that ...
- 121
1
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0
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60
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CT61 form for HMRC (corporation tax UK)
I recently created a company in the UK for occasional work as a locum pharmacist. I get paid by pharmacies for hours worked. Following advice from HMRC, I recently pulled out £500 of the company that ...
- 11
2
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1
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115
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What is the meaning of reserve in the assets of a bank's balance sheet?
I was reading a bank's annual report. I discovered that the table of balance sheet contains 'reserve' in the assets column of the balance sheet.
I want to know the meaning of that reserve, and its ...
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3
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1
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166
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Can I 'reverse' an S Corporation distribution?
I am the sole proprietor and employee of an S Corporation.
I know I'm required to pay myself a reasonable salary.
Say in January the S corporation received $30,000 of revenue from completing a project....
- 131
1
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1
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38
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S-corp accounting and tax and accounting - buffer amount for early next year
I have single owner LLC taxed as S-Corp. I got an interesting question, let us say we have to keep some buffer amount to keep January expenses in the bank, how do we classify this for both accounting ...
- 133
4
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2
answers
537
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How best to record tax relief?
I contribute to a SIPP, and receive tax relief at the basic rate (HMRC adds 25% of the value of my contributions to it). I am wondering how best to record this in my books, and whether any accepted ...
- 343
0
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1
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57
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Solo 401k establishments costs - is it employer or employee?
I am on owner/employee for S-Corp. Took help from an administrator in establishing Solo 401k and paid some fees.
Can we write this fee as "business expense" (or) "is it EMPLOYEE expense&...
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2
votes
2
answers
184
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How to record currency conversion in a journal entry
I am keeping track of my personal finances in a physical accounting journal. At a currency exchange desk, I converted 100 CAD into 75 USD. How should I record this transaction in my journal? In double-...
- 16.8k
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3
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989
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What does the term Other Revenue mean?
I am looking at Target's recent earnings release which can be found at the following URL:Earnings Release.
On page five it show two types of revenue: sales and other revenue. What does other revenue ...
- 1,378
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108
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In a budget do you account for expenses of last month in current month?
If I recieve june's paycheck by june 30th Ill be using that paycheck through out the month of july. In a budget then, should I add june income and july expenses in the same column?
thanks
- 63
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0
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22
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Cash Flow vs Net Profit in Evaluating Capital Evaluation
In Kaplan's CFA Level 1 online course, it has been claimed that after-tax cash flow-based ratios (NPV) are better than profit-based ratios (ROE, EPS, etc...) in terms of evaluating capital allocation ...
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1
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2
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120
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Is the price-to-book ratio too arbitrary to be useful to investors?
Many financial portal websites show the price-to-book (P/B) ratio of companies. For example, Yahoo Finance shows this P/B ratio for TotalEnergies SE:
Under IFRS (IAS 16 — Property, Plant and ...
- 16.8k
13
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6
answers
3k
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How do you calculate the depreciation on a car?
I’m thinking of selling my new car. Here are some informations about it.
Model: Suzuki XL7 2022
Bought: Brand New, January 2022 (6 months of usage)
Initial Price: ~$16600
Mileage: 3100 miles
If I’m ...
- 131
1
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1
answer
54
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Accounting question about recording debits & credits
Please consider this simple spreadsheet, which tracks a $1,000 loan that I gave to a friend, along with the friend's payments against that initial loan.
type date amount
------------------...
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In a Budget is Saving Considered an Expense?
I created a personal budget with a savings section but I'm not sure if it is considered an expense. Is it an expense, and how do I account for it?
Thank you all for your great insights.
I decided its ...
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136
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What type of accounting practice is this and is it good, bad or depends on other circumstances?
QUESTION - I'm looking for a name I can associate with this specific type of accounting practice and whether this would be considered good accounting, bad accounting, doesn't matter, depends, etc?
...
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3
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76
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The cost of capital Equity versus Debt
Trying to understand something basic about cost of capital that I can't seem to wrap my head around.
When we talking about issuing debt to raise funds for a project, the cost of capital is the ...
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1
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44
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How do I structure accounts to represent capital and depreciation for multiple jurisdictions, keeping equity accurate?
I am required to file taxes for my small (sole proprietorship) business and personal finances in two jurisdictions (Canada and the USA, as it happens). I have capital equipment for my business. Both ...
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1
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162
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Profit and revenue increased but organic growth decreased made stock decrease 20% in a single day
I was looking at the stock "Sinch". It recently released a bad report according to media. I did not really understand why. I looked up the report and it looked good to me which made me more ...
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1
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676
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How do I record a purchase of gas in a gnucash chart of accounts?
Complete beginner here.
Eyes sore and brain bent from reading. My question too basic for anyone to answer it seems.
It is this:
I start off with the new chart of accounts. I spend $50 on gas. How ...
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3
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1
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257
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How to track business mileage in GnuCash?
I have a small business which involves some driving to clients using my personal vehicle. I track both my individual auto expenses and my mileage in GNUCash but so far have only been using the ...
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1
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200
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How can company show a profit before income tax, but then lose money after income tax?
I am looking at a recent earnings release from Apache Oil. The symbol for Apache Oil is APA. Here is a link to the earnings release: Earnings Release
The release (on page 6) shows that the company had ...
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Stock Analysis Equation Questions
I am a newer value investor and I am trying to slowly learn. I came across these equations and I am not able to find for sure online or in the books I have available what these abbreviations/acronyms ...
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Is IRR in VC different to IRR in accounting
I am coming from a more accounting background and I always understood as IRR to be a discount rate that would lead to an NPV of a project to zero. That is to say that IRR is how much value money loses ...
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2
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What are the accounting rules around payment of dividends for loss making companies (VOD)
Vodafone (LSE:VOD) has been loss making and has negative retained earnings (Accumulated losses).
What are the accounting rules that allow Vodafone to pay a dividend - From the UK Government's website:
...
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2
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3k
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Double entry bookkeeping - Record incoming money which I would hold temporarily as a custodian
My dad's clients often transfer payments, which they owe to my dad, into my bank account [for technical reasons, some payment types into my account are not currently available in my dad's]. After a ...
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1
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80
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Personnel costs recorded twice in the income statement? [closed]
We are talking about a company that produces its own products. Since the manufacturing costs also include part of the personnel costs, the personnel costs are recorded twice in the income statement. ...
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1
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3
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148
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Does WACC apply to founders of a business?
I learned the other day that the Weighted Average Cost of Capital (WACC) is defined as follows:
Source: https://en.wikipedia.org/wiki/Weighted_average_cost_of_capital
Basically, investors give money ...
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0
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53
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T-accounts for shared rental property
I recently bought a vacation property with two friends that we intend to use part-time and rent part-time. All three of us are on the deed and mortgage. Equity, income and debt are all split equally ...
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2
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232
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What's the difference between "Net Sales", "Total Revenue", and "Gross Sales"?
What's the difference between "Net Sales", "Total Revenue", and "Gross Sales"?
From what I have found,
Gross Sales = the sum of all receipts
Net Sales = Gross Sales - ...
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1
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67
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How does a balance sheet look when almost all income is immediately drawn?
I have a small business and I am being asked to produce a balance sheet. I have a very simple business model: I do hourly work and get paid on a 1099 basis. It is an LLC but I treat it kind of ...
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0
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Double-entry accounting example for Christmas gift from family member
A family member, Sandra, pays $10 as a Christmas gift for Joe's daughter, Anne. Joe is learning accounting and records the entry as follows. Joe wants to check if the following entries are correct or ...
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1
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How should I classify a loan with less than 12 months left when constructing personal financial statements?
If I have a loan that I will finish repaying over the next 5 months (original tenure is 5 years so I've paid 55 monthly repayments already), if I'm constructing a financial statement today, does this ...
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2
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Is there a standard for the "transaction type"?
After designing and using my personal bookkeeping system for quite some time, I realized that it lacks one column: what "type" of transaction it is.
I have made it a smallint called type ...
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How to account for a stock spinoff in an investment account
I recently obtained shares of Sylvamo Corp (SLVM) as a result of a spinoff from International Paper (IP). In the transaction history of the containing brokerage account there was no intermediate ...
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1
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Does a public company's tax comes from financial reports? [duplicate]
I'm studying financial reports. There is a section on Yahoo Finance that contains gross profit, net income, total revenue, etc..
How does a company know how much tax it should pay? Is it based only ...
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2
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169
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How do banks balance the books after a borrower defaults on loan repayment? [closed]
Buyer gets a 10k loan to buy a tractor from Seller.
In the banks' books:
Buyer
Assets
Liabilities
10k deposit
10k repayment later
Bank
Assets
Liabilities
10k repayment later
10k deposit for Buyer
...
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2
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102
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Is the way I'm calculating depreciation on my rental property correct?
I've recently purchased an out of state rental property. I'd like to be ahead of the game and fully grasp the concept of depreciation so that when tax season comes around, I won't be clueless.
I've ...
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0
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1
answer
48
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Sales Discount Journal Entry [closed]
I have this problem that I have found difficult to solve. First am not a professional accountant so it might be a bit obvious to accountants bear with me. I will explain the question with an example
...
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1
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52
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Inventory turns formula doesn't seem to give intuitive results [closed]
In this image, I purchase $100 worth of inventory, sell all of it, purchase another $100 worth, and sell all of that (in some time period). This looks like it should equal 2 turns:
However, using ...
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0
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98
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Items bought for staff to work remotely, kept by staff [closed]
I volunteer for a small US-registered non-profit (almost all activities are conducted outside the US, but I'm asking about US accounting). We're trying to record some expenses and are unsure what we ...
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1
answer
151
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Calculating Earnings per Share for Berkshire Hathaway
I am looking at page 5 of the following earnings release: Form 10-Q (Q2 2021)
I want to calculate the earnings per B-Share. I do this with the following
calculations:
28094e6 / ( 1519576*1500 + ...
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1
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Do convertible preferred shares increase common equity when converted?
Do convertible preferred shares increase common equity (increase the ratio of common equity to preferred equity) when converted? For example there $4m in shareholders equity and there are 4 shares, 2 ...
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