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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.

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2
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1answer
90 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 ...
1
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1answer
257 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 %...
3
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3answers
156 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 ...
1
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1answer
105 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 ...
0
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1answer
62 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 ...
2
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3answers
355 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 ...
1
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3answers
237 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 ...
1
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1answer
17k 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 ...
3
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1answer
237 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
84 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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0answers
344 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
600 views

Accounting Entry for Selling a Covered Call

I recently started looking at trading options and started with the time honored tradition of selling a covered call. What I don't understand now is what my trading platform (TD Ameritrade) balances ...
1
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1answer
410 views

Difference between Fair Value derivative and Speculation derivative [closed]

I understand the purpose of a fair value hedging instrument (preserve the fair value of an asset, liability, etc) and a speculation derivative (default classification if the derivative isn't ...
2
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0answers
104 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
329 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, ...
2
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2answers
351 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
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2answers
4k views

How to transfer personal auto lease to business auto lease?

What is involved in transferring a personal auto lease to a business auto lease? We have a car for our business that was leased prior to establishing our LLC, therefore it is under our names, ...
4
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3answers
648 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 ...
1
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0answers
62 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
71 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 ...
9
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2answers
1k views

How should I record the changing value of an investment in accounting software?

I have the following (simplistic) structure set up in GnuCash, but this should apply to other software too: Assets Bank account Pension Income Salary Interest Every month, my salary is split ...
8
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2answers
665 views

Claiming income/deductions on an illegal apartment

We are currently renting a basement out to some friends of ours. We are asking a fraction of the price of what its worth. I understand the risk of renting without a certificate of occupancy. The ...
0
votes
1answer
207 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
202 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 ...
4
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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-...
1
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2answers
207 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. ...
1
vote
1answer
132 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
662 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?
7
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1answer
449 views

How to double-entry bookkeep money incoming from sold items?

I started doing double-entry bookkeeping with GnuCash to keep track of my personal finances, down to the penny. I have as assets my bank account and "cash in wallet", and many expense accounts for ...
-1
votes
1answer
1k 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
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1answer
1k 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
51 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
votes
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 ...
4
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4answers
18k views

After paying HR Block for a consultation, are you actually obligated to file your taxes with them if they've found ways to save you money?

tl;dr HR Block charged me $100 for a "review"—that is, entering in their system what I myself calculated my returns would be (via TurboTax), and seeing what they could come up with to beat that. If ...
2
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5answers
2k 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:...
3
votes
1answer
96 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 ...
37
votes
2answers
7k 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, ...
3
votes
2answers
286 views

How should I document mandatory furlough in GNUCash?

My union contract requires a certain number of furlough hours be taken over the next year and a half. Furloughs are basically unpaid vacation--I don't show up, and don't get paid. How should I ...
4
votes
1answer
122 views

Deducting interest on a loan to repair a rental property

I own and rent out an apartment in a building that needs extensive repairs. The body corporate has broken the levy for the repairs into six payments. For the first three payments, last tax year, I ...
1
vote
1answer
363 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 ...
2
votes
1answer
85 views

Moving a personal business to a LLC accounting in California

I've been building a website and set up a single member California LLC early this year. Since, I've opened a bank account but have expenses during the building of the site that I've paid out of my ...
3
votes
1answer
170 views

KMyMoney: Extract payee from memo field using regular expressions

short version: How does the "Extract payee from memo field" feature in KMyMoney work? You can find it here: KMyMoney > Accounts > Choose account > "Edit Account" > "Online Settings" > "Extract payee ...
0
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1answer
306 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 ...
3
votes
1answer
633 views

Tracking Stocks in gnucash: Total mount shown in the ledger is wrong

I recently started buying some stocks and track them with gnuCash. I used the gnuCash manual to get started. Basically I have Assets:Broker Account where I transfer money. From this account I buy ...
1
vote
1answer
78 views

Calculating assets-to-equity from equity-to-assets

I've read that to calculate equity-to-assets using assets-to-equity the following can be done: assets-to-equity = 40% equity-to-assets = 1/0.4 = 2.5 Why does that work out?
3
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1answer
188 views

Calculate hourly wage from annual salary offer?

I recently took a new job and accepted the pay at an annual rate. When I got my first pay check I saw that I was being paid hourly. The problem is that if you multiply my hourly wage by 40 * 52 or use ...
0
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1answer
135 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 ...
1
vote
1answer
80 views

How companies bill for their services? [closed]

I'm doing an accounting software as part of a homework project, targetting SMB to print delivery forms and invoices for physical products and services (services such as laundry). But I don't know ...
4
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3answers
5k 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 ...