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.

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4answers
8k 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 ...
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3answers
183 views

How to track options trading in GnuCash

I recently started experimenting with a bit of stock trading on the side – put aside a bit of money, small enough I could afford to lose it entirely, in an ETrade brokerage. I've been keeping my own ...
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1answer
94 views

Is it possible to have positive retained earnings despite having lost money since inception?

I'm looking at the balance sheet for a private company that has lost money every quarter since being founded several years ago. It shows +$228k in retained earnings. Management claims that their ...
2
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1answer
34 views

Can an S-Corp pay the sole owner/employee with a 1099?

Suppose a person has a one-person S Corporation, and the corporation is paying the owner/sole employee with a 1099. The owner then pays Self-Employment tax on a Schedule C when filing. Is this ...
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0answers
19 views

How to account for incoming ACH transfers (GAAP) [closed]

There's some debate and differing opinions on this in my company. Option 1: At payment time: Dr 'Cash in Transit' / Cr 'Receivables' Once cash settles in bank account: Dr 'Cash' / Cr 'Cash in ...
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1answer
46 views

How to value digital asset for a startup? [closed]

How do startups value their digital assets in their accounts? A website or a social media account that generates revenue?
8
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1answer
343 views

When starting a small business, how does one properly record “seed inventory”?

Let's assume someone wanted to start a small, simple business. They go through all of the paperwork to get an LLC, they set up a business checking account and they are ready to go. Such an individual ...
3
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4answers
4k views

What is the Equity account for in GnuCash?

What is the purpose of Equity account in GnuCash? For example, I have income through Salary account $500, after I have expense by buying book for $5 (so in Expense:Books account is entry for $5). But ...
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0answers
12 views

UK Self-Employed Income Support Scheme (SEISS) eligibility

Will the fact that I have not been in the UK since 26th of June affect my eligibility for the third and fourth SEISS grants? My situation: I have been unable to work due to COVID since March. I have ...
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3answers
120 views

How can Forex Realized PnL be calculated when trading a pair of two foreign currencies?

Let's say my home currency is USD, but I'm trading a pair of two foreign currencies, e.g. EUR / GBP. Let's say I open a position by entering a long EUR/ short GBP position; I can represent my position ...
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0answers
24 views

QBI calculation when S Corp owns LLC

I am sole owner of an S Corp that is a member in an LLC. Let's say my S Corp gets $100k from the LLC, of which $50k is guaranteed payments (not eligible for QBI) and $50k is K-1 income (eligible for ...
0
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1answer
49 views

Calculating Dividends paid out and Div ratio from finance sheets

So I was trying to calculate the dividends a company paid out from the balance / income sheet and the retained earnings (the delta between this and last period). I thought the dividends paid could be ...
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1answer
71 views

reconcile yearly credit card statements

Background: My clients get credit card statements every year. He wants me to find out that whether the Bank is going fair calculation or not. Question: Is there any quick and accurate way to do the ...
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0answers
39 views

why hasnt someone proposed accounting stack? [migrated]

mods - can you move this to meta please? I got to file taxes soon for my business. I'm reading some accounting textbooks to teach myself the subject. I want to ask questions from it. but you can't ask ...
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1answer
63 views

GnuCash Reconcile Fractured Payments

First-time listener; first-time caller. For reasons I don't quite grok, Amazon sometimes places multiple small transactions on my credit card for a single invoice. For Example, a recent invoice of $38....
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1answer
26 views

Current ratio calculation given the current liabilities for current assets

I want to ask a question about current assets and liabilties in relation to the current ratio. I was provided with the following question: Weavers Wedding Dresses has current liabilities on 31 ...
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1answer
100 views

Difference between Stockholders' Equity and Stockholders' Equity-Parent?

What's the difference between "Stockholders' Equity" and "Stockholders' Equity - Parent"? Which should I use in calculating the return on equity?
2
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2answers
184 views

Loaning money to your small business by billing yourself and paying with personal credit card?

Can you loan money to your own small business by billing yourself and making a payment to it with your personal credit card? How would the accounting work on that? The business isn't actually billing ...
4
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4answers
10k 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 (1,120,000)...
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3answers
287 views

Is a checking account in the negative still an asset?

If I have a checking and a credit-card accounts, the first will be considered an asset, and the second a liability. What happens if the checking account balance is negative (overdraft)? Is it still ...
0
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1answer
79 views

Can a risky asset have negative beta coefficient?

I have a question from my tutorial asking whether Can a risky asset have negative beta coefficient? I can only think of how this is possible only if risk-free rate is more than the expected returns, ...
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0answers
12 views

how to adjust accruals if over estimated on company tax return?

On my financial statement for end of year company tax return (prepared by an accountant) there is an estimated accrual figure for accountancy fees for preparing end of year tax. I want to file my own ...
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1answer
62 views

Unsure of which financial ratios to suggest inventory level

I am doing some tutorial questions on financial ratios and would appreciate some help regarding the following: I am given a few selected options on ratios to determine my answer - Liquidity - Current ...
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0answers
24 views

Earnings coverage calculation confusion

I am working my way through security analysis by Benjamin Graham (sixth edition) and have come across some calculations that do not make sense to me. This is the paragraph that precedes the data that ...
0
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1answer
340 views

Questions regarding the goal of finance and agency [closed]

I found this question in a past year paper for a finance module The goal of finance is to maximise shareholders’ wealth. A company is already meeting the government standards of safety and health at ...
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1answer
320 views

Question regarding present value with discount rate

I am a novice at finance subjects and need to find out Present value given a few details The university fees of $45,000 a year will have be paid starting 11 years from today. He is analysing an ...
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2answers
805 views

How much accounting knowledge is needed to read financial statements of publicly traded companies?

You have to understand accounting and you have to understand the nuances of accounting. It's the language of business and it's an imperfect language, but unless you are willing to put in the effort to ...
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1answer
144 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 ...
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0answers
43 views

Why do Yahoo Finance and MSN Money show two different debt/equity ratios?

2020-09-06 AMZN debt to equity ratio on Yahoo Finance: 123.97 (most recent quarter) AMZN debt to equity ratio on MSN Money: 0.68 (quarter can't be selected)
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0answers
23 views

Selling Asset to Own Company and Recording as Directors Loan

So I've set up a limited company (in England and Wales) and I want to sell some of the equipment I bought for this company prior to incorporation so that I can claim back the VAT. However, there's not ...
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2answers
119 views

Are shareholders and tax collectors shown the same financial statements?

Companies publish annual financial statements directed at shareholders. Are these financial statements the same as those given to the tax collector? Do companies report the same profits to their ...
0
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1answer
57 views

Unpaid accrual expenses [closed]

Let's say for-profit corporation ALPHA INC. borrowed $1M from person JOHN DOE, who is also an executive officer of the corporation. The corporation ALPHA INC. uses accrual accounting method, while ...
0
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3answers
208 views

Do I need an accountant when starting a business? [NYC]

My wife and I are going to pull the trigger in NYC in the next coming months. I'm attending a few SBA classes in my area and whatnot. I consider myself very good with money in general, and I ...
3
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1answer
80 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
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1answer
47 views

Workplace benefits: negative expense, or different category of income?

I have two concrete examples that I'm curious as to how people would account for them. note that I live in Germany so so rules might be different elsewhere Mandatory Health Insurance Benefit At the ...
3
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2answers
266 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 ...
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3answers
134 views

Is received check considerd as cash in accounting?

If I am a salesman that uses accrual accounting and I receive a check for a product I sold, should I consider it cash? If not in what account will it fall ?
0
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1answer
91 views

Is it valid to have an accounting entry with a value of zero?

If so: What would be the use cases of such an entry? Is it a debit, or a credit, or something else entirely? Context: I'm developing software that has accounting functionality and was writing ...
0
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2answers
127 views

Do businesses make a profit on VAT?

According to my understanding, VAT is the tax paid by the consumer on value added at each step. For example, suppose VAT is 10%. A farmer produces tomato and sells for $10 to a packaging company. ...
4
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2answers
764 views

What are the tax implications for doing accounting on the cash vs the accrual method?

What are the tax implications in the U.S. for doing ones accounting on the cash method versus the accrual method? As I understand it the main difference is in the timing (i.e. which period) of ...
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3answers
83 views

How can I see splits relevant to an account, not just the parent transaction?

I commonly group purchases or invoices into transactions and then show the individual components as splits in gnucash. I don't know if this is the right approach, but suppose I go shopping, I might do ...
1
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1answer
105 views

What is the difference between Paid in Capital and Paid up Capital?

I am struggling to understand the difference between these two. They seem to mean the same thing and are used interchangeably. Investopedia also has two different article on them. Paid-in capital is ...
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0answers
28 views

Is there public information indicating that a company is multinational?

I’m in transfer pricing and I’m wondering if there are any filings that indicate that a company is multinational? If so, is there any information on the number of subsidiaries the multinational ...
1
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1answer
104 views

Compute Loan Balance for a specific month (period) on an amortized loan

I'm looking for is a method that will allow me to compute the Loan Balance value for a specific period (month) in the amortization table without having to compute all of the values before it. Let's ...
-3
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1answer
99 views

What advantage is there by using a ledger? [closed]

Although most businesses don't have a 1:1 ratio between orders and receipts, I think it's an easy starting point to explain why accountants would generally agree that even such a business would be ...
-3
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3answers
89 views

Is it correct to say that any “Basis of accounting” is a database that can be used to create a Trial balance? [closed]

I try to learn about some fundamental terms in account management and I have a trouble understanding the difference between the following two terms: In English Wikipedia, a Basis of accounting is ...
2
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2answers
350 views

Sage Instant Accounts or Quickbooks? [closed]

I am a small business, single employee IT contractor looking for accounting software to do my annual returns and vat returns in the UK. I've researched a bit about QuickBooks and Sage Instant ...
0
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1answer
40 views

Consolidated Cash Flow Statement Yahoo Finance Reliable?

this is the first time posting a question as you'll notice I am a bit of a novice in Accounting. I'm grappling with the idea of disregarding financial statements from Yahoo Finance in my decision-...
2
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1answer
194 views

Is it usual for a payer's CPA to ask (demand) that I verify amounts on the 1099 he just issued me?

I do $4000 to $5000 worth of consulting work annually for a small 503(c) non-profit. They sent me my yearly 1099-MISC last week. A few days after I received it, the CPA that handles their books ...
45
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5answers
13k 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 ...

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