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.
497
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Loan: calculate number of monthly payments with fixed annual interest, fixed montly payment, and 1 additional payment per year
The situation is the following. Consider a loan of 430,000 units (dollars or whatever).
The client will pay 10,000 units per month.
The client will pay an additional 70,000 units every 12th month of ...
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1
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51
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Do I need to file form 5472?
I own 100% of a US based LLC, in Wyoming, and I am a non-resident of the United States. I want to know if I need to file form 5472 even though my company had no transactions whatsoever.
I paid a third ...
- 101
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0
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45
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How to Account For a Refund of Taxes Which Have Already Been Paid to the Government with Double-Entry Accounting [closed]
I'm trying to understand how I would account for the following reservation of a hotel room:
Reservation Created: Jan 1
Checkin: Jul 1
Checkout: Jul 6
Daily Unit Rate: $100
Subtotal: $100 x 5 nights = ...
- 119
-2
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0
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50
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Format/organization of transactions? (Under GAAP, etc) [closed]
The accounting standards focus on the financial reports (income statement, balance sheet, cash flow statement).
What about the underlying transactions (from which the reports are created)?
Is a ...
-2
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2
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131
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Why is the "cash flow statement" a thing? (It seems it can be deduced from the balance sheet and income statement anyway?)
The question is basically in the title.
From what I see, once I have the balance sheet and income statement, I already have everything I need about my business. From what I've seen, when creating the ...
1
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1
answer
78
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Quickbooks: how to keep track of mortgage installments as expenses?
I am new to Quickbooks. Anyone can help answer this quick question? I need some help figure out mortgage installments bookkeeping rules.
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22
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Filing a UK Company Tax return for 22/23- is it possible to bring back a trading loss from 23/24?
Whilst filing my UK company tax return for the financial year covering 22/23 in the section 'Trading losses', under 'Bring back a loss from a later period' is states the following:
You can only bring ...
- 101
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31
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Why is the UK Corporation tax payment deadline before the company tax return filing deadline?
I've returned to contracting (as a software engineer) after 8 years of full time employment and am now working through my own LTD company.
I mistakenly thought - as is the case with self assessment - ...
- 101
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0
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23
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Reverse accured income on first balance day?
When using the cash method for accounting, pre-paied income and expences and accrued income and expences will not be recorded in the books, except on the last day of the year. For example, on the 31/...
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1
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70
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Do I need to charge VAT to other VAT registered businesses?
If I invoice a client who is VAT registered, and I am VAT registered, do I need to add on VAT even though they will claim this back from HMRC?
I'm sure I've seen online somewhere where adding in a VAT ...
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78
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Is there a formal distinction / definition of a “credit” vs a “refund”?
I’m working with an event organizer where they collect payments in advance for the event. The policies for the event host state that “any refunds due to attendees must be issued within 30 days”.
...
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1
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1
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93
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GnuCash: How to assign a checking account from which a bill will be payed
Description
I'd like to properly account for purchases (e.g. on Amazon).
In most cases, when I purchase an item the merchant sends me the package and only after a couple of days credits my bank ...
- 11
3
votes
1
answer
128
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German invoicing practices
I'm based in the UK, and recently started buying services from a German company (Contabo). I'm paying from a Euro card account, and they have a UK VAT registration, so there are no complications with ...
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How to apply Canada's superficial loss rule for multiple sales?
I know that a capital loss cant be claimed if you repurchase the asset within 30 days of the sell date.
DATE ACTION SHARES TICKER CAP GAIN
1. Jan/01 BUY 1,000 MSFT -
2. Jan/...
- 1,370
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1
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90
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How do I close my account in GNUCash
I am not a Accountant or GNUCash expert so I am seeking help. Let me set the stage. I am from India, here we have investment option called Fixed Deposit abbreviated as FD (in USA I think they call it ...
- 11
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1
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41
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Would operating income be found using EBIT or using the income statement?
How would I find the operating income on this income statement?
Is it the stated number: "INCOME BEFORE PROVISION FOR INCOME TAX: $13.8m" or would I use the EBIT formula:
EBIT = net income + ...
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1
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30
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Calculating Canadian Capital Gain or Loss After Loan and Investment
Consider the following hypothetical scenario involving trading with margin in Canada w/ made-up exchange rates:
I take out a $100,000 USD loan on Jan/01 - ($150,000 CAD)
I lose all of it immediately ...
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3
votes
1
answer
111
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GnuCASH - How to split a single bill in multiple due dates for payment?
It happens often that I have a single bill from a vendor and the payment is split along multiple dates, but I can't get how to do that and Gnucash docs don't explain it much.
So far, I split the bill ...
- 31
-1
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2
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120
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Resources vs. Assets
I read an excerpt on Quora from the book, "Rich Dad, Poor Dad":
If you want to be rich you must know the difference between an asset and a liability and you must buy assets. This may sound ...
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2
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102
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Intuition behind business entity concept?
Following definition is the representative of the plethora of definitions one would find on the internet:
The business entity concept declares that a business stands independently from its owner, and ...
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1
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128
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Intuition behind the accounting equation: Assets= Liabilities + Shareholder’s Equity
Every transaction (exchange of value) has two sides: what I get, and what I give. How this thought leads us to say:
Assets = Liabilities + Shareholder's Equity
All I mean is there any intuition ...
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1
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118
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How to collect money on behalf of a third party in double entry bookkeeping [closed]
I run a store where I sell products on behalf of other people. For example...
I make a sale for £100. £20 is my commission and £80 is owed to the third-party.
At some point in the future the third-...
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1
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2
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80
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UK reg business (not vat reg) paying consultancy fee to the EU consultant (not vat reg)
My limited company is registered in England (not vat registered though). I need to make a payment to a consultant abroad in the EU who is not vat registered.
Do I need to pay anything to the HMRC and ...
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2
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0
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60
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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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141
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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, ...
- 105
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1
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42
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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 ...
- 115
1
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4
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140
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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 ...
- 1,540
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2
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46
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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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60
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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 ...
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1
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69
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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 ...
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0
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22
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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 ...
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72
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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 ...
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2
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1
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124
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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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198
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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....
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1
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1
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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 ...
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4
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2
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539
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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
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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
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461
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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-...
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3
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1k
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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 ...
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123
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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
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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 ...
- 16.9k
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6
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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 ...
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1
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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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138
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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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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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45
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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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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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713
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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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1
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343
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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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