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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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1
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2answers
314 views

Finding monthly payment for ordinary simple annuity with varying interest rates? [closed]

I've been working at this question for some time now and I'm quite stuck. Some help would be greatly appreciated. I can figure out recurring payments by themselves, but I'm drawing a blank when it ...
1
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1answer
150 views

Where should Accumulated deprecation appear on my personal balance sheet?

Looking at my balance sheet that my accountant prepared, and he has listed the depreciation of my property as follows Non Current Liabilities Provisions Accum Dep'n Property ...
1
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2answers
225 views

How to manage household finances (income & expenses) [duplicate]

We are a young family of two, both working and having comparatively equal income. The question is how do we budget our common expenses (relatively equally) and at the same time preserve our freedom to ...
3
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3answers
679 views

Accounting equation: does income really decrease equity?

I am new to using double-entry bookkeeping for personal finances. GnuCash uses a variant of the accounting equation that has five variables, and which seems to be known colloquially as an "expanded" ...
0
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1answer
79 views

What is an accounting term that factors growth as a function of time and discount rate?

Bare with me, as I don't know how to properly describe what I'm asking for. Please edit the question if it can be asked in a way that uses correct vocabulary. I might be just asking for an compound ...
11
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3answers
1k views

How to account for months lapse in tracking finances

I have been tracking my finances with GnuCash since the beginning of this year. All was good until summer hit and I spent more than two months traveling, but I'd like to get back to it without the ...
1
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1answer
120 views

What are the must know topics for personal accounting? [closed]

I'm 18 years old; last year I finished high school. I attended a school oriented in accounting, and even though I didn't care much about it at the time, now I realize how important is to know how to ...
1
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2answers
200 views

Does capex affect the Income Statement of a company in any form?

I know capital expenditures show up in a company's cash-flow statement, but do they have any effect on its income statement? That is, does the income statement show only revenue-generating activities?...
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3answers
3k views

Is stock in a company considered a good or a service, or something else?

I'm trying to classify what stock is on a website I've been working on in my spare time. I have two options in my database right now: Goods Services I wanted to add this entry for Facebook stock: ...
7
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1answer
247 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 ...
5
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1answer
19k views

Basic bookkeeping account entries for a house purchase and mortgage?

I borrow 200,000 to purchase a house worth 250,000, putting down 50,000 of my own. The borrowing is at 5% over 30 years. What are the basic double-entry bookkeeping entries I must make to record this ...
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2answers
78 views

How to categorize a customer service check on accounting books?

I'm trying to help out a friend with their bookkeeping for a real estate investment they just purchased. I'm pretty sure I have categorized all the closing expenses properly except for one thing. ...
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2answers
155 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
495 views

Setup Rental Security Deposit account in GnuCash

I'm new to GNUCash and creating a new GNUCash file to track my rental. I have a security deposit account with my bank, and am trying to make sure I get this all setup correctly. In quicken, I had an ...
9
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1answer
995 views

Presenting negative numbers using parentheses: where does this practice come from? [closed]

The standard accounting way is always to show negative numbers in parentheses. Where does this practice come from? For example, this cash flow statement use parentheses indicate negative values:
0
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1answer
2k views

Credit card expenses showing as Liabilities in QuickBooks

I have a business and I have a company credit card. I have linked this card with my QuickBooks online account. When I pull a "balance sheet comparison" report for the year, it is showing an amount in ...
1
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2answers
145 views

Accounting strategy for depreciating capital expenditures (real estate) that occur in different years?

Suppose I purchase a real estate property in 2010. Suppose in 2011 I perform some capital expenditures that will need to be depreciated. Suppose further that I perform some more capital expenditures ...
0
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1answer
150 views

How to get a grip on finance? [closed]

I hope this is not too off-topic (theoretical but not necessarily off-topic), but I am just starting to understand the financial world and I am a bit confused while reading publications and books ...
2
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1answer
2k views

How to Calculate Profit and Loss for trading position?

On my homework problem. I have this scenario below: 12/10/2010 - Long Position in a stock of 800 shares at $4.5 per share. 12/10/2010 - Long Position in the same stock of 200 shares at $4.55 per ...
2
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3answers
6k 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 ...
0
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1answer
241 views

How do Wealthy people deal with tax? [closed]

Personally I will start full time work very soon and I was just looking into how much I could potentially take home. It seems like the harder you work the more that gets taken. So I decided to type in ...
4
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3answers
388 views

Help in understanding a basic accounting principle

'An entry which increases an asset account is called a debit.' So if my bank account is my asset account, when I debit money, money actually goes out so it is a 'decrease'. But the above statement ...
3
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2answers
512 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 ...
2
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1answer
91 views

What is S/P in “Tax Deduction S/P”? [closed]

This may be an unusual question, but I have a plugboard labeled "Tax Deduction S/P" for an IBM 402 accounting machine from the 1950s. This must have been used to process records on punched cards to ...
2
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1answer
710 views

Online accounting with Stripe/PayPal transactions

I have a small solo business where I sell services on a website. I probably have about 100 small transactions per month and people pay me with PayPal or Stripe. I have been doing accounting in an ...
1
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1answer
775 views

Change In Cash and Cash Equivalents (cash flow) vs Cash And Cash Equivalents (balance sheet)

Goal: Figure out why Change In Cash and Cash Equivalents on the cash flow statement does not equal change in Cash And Cash Equivalents on the balance sheet. Example: Stock: DEO Period Ending: 6/...
5
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2answers
169 views

Direct Deposit in Shared Account

My boyfriend has asked me to help manage his money. We are looking into opening a new bank account where his checks will be direct deposited into the account and I'll give him a weekly allowance of ...
1
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2answers
752 views

Link bank transactions for credit card payments in GnuCash?

Using GnuCash. I download activity from my bank and from my credit card. I've imported my bank activity and that will have entries such as Date | Description | Withdrawal 1/1/2017 | ...
4
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1answer
160 views

What tax year does my income get assigned to if my client sends the payment in December but I receive it in January?

Suppose I did some contracting in December, my client puts a check in the mail in December, and I receive it and cash it in January. Does my income count for December or January?
1
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1answer
1k views

What is the field “Folio” in an accounting book for? [closed]

I am not sure is this a right place to ask this question here. I am currently running my own business, and using a traditional accounting book to record all the debited and credited amounts. I don't ...
1
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2answers
124 views

Credit and Debit [closed]

I often get confused between debit and credit accounts for example. Capital To Start Up Your Business , the two accounts being affected are bank and owner's equity ( if I'm correct that's why it's ...
3
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1answer
505 views

Buying car as S-corp

I have an S-corporation and I will be buying a car under it today. There are somethings I am unsure about it which I would like to confirm. Do I pay for all the costs of the car out of my business ...
3
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1answer
8k views

Meaning of “Non-trading Item” and “Capital Item”

I'm reading the income statement of a company, and the column describing profit is titled Profit from operations before non-trading and capital items. So, my question is a two-parter: What is a non-...
5
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1answer
1k views

How do I do double-entry bookkeeping for separately-managed investment accounts?

Double-entry bookkeeping is new to me but is something I'm trying to apply to our personal finances. The area I am struggling with is how to deal with our investments. We have a mix of Canadian RRSP ...
2
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1answer
152 views

Recording of personal property contribution to S-Corp in QuickBooks

I began an S-Corp, and I contributed a truck, computers, and furniture. How do I record these items in QuickBooks? What accounts do I use?
4
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2answers
581 views

GNUCash: How to count up equity?

I'm new to getting my finances in order, and I've decided to use GNUCash to track my spending and general financial health. I'm reading the manual and trying to take control! My trouble and ...
1
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3answers
3k views

Why is the number of issued shares less than the number of outstanding shares

We know that #issued shares = #outstanding shares + #treasury shares. So the number of issued shares must be greater than treasury shares by definition. However, Starbucks' fiscal 2014 From 10-K ...
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1answer
71 views

Rule of thumb for deciding between “description” and “memo”?

I'm new to accounting software. I've been going through some of my old statements and entering them into an accounting system. Because I don't really have any experience with this, I've been having ...
29
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3answers
6k views

What are the advantages of doing accounting on your personal finances?

What are the advantages of keeping track of your personal finances? Is it only worthwhile if I earn "enough"? Why should I bother?
2
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1answer
109 views

Cash-basis accounting and barter

I'm aware that the IRS treats barter between businesses as the sale of services in both directions, and this make intuitive sense if you use an accrual accounting method. But how would you treat this ...
1
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2answers
129 views

How to register obligatory social insurance?

Every month I have to pay a certain amount as social insurance. It is my debt - I have to pay regardless of my income. What should be the source of this debt? Opening balance from equities branch? ...
1
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1answer
678 views

Journal entries of rent [closed]

How will be the journal entries of these rental transaction: We are giving post dated cheque for payment of rent. Our total rent is example: 12,000 and giving 4 PDC [Post Dated cheque] each 3,000 ...
4
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1answer
843 views

What is the difference between an Independent Financial Advisor (IFA) and an Accountant?

I'm looking for some advice on various small personal financial matters relating to pension, salary, taxation etc. I've been given a personal recommendation for an accountant, but looking at their ...
4
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1answer
37k views

Correct method of recording bank transfer in double-entry accounting

What is the correct way to record the transfer of funds between 2 accounts of the same type (ie checking account to savings account)? Since they are both debit accounts, wouldn't crediting one and ...
4
votes
2answers
186 views

Need help filling out W-4 form

I need help filling out W-4 form so that I get more money from my paychecks and pay less tax. Recently my circumstances have changed, I am married and have 1 child (2 months old), only I work my wife ...
-1
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1answer
92 views

How to calculate a forecast [closed]

I've been looking around to know how to calculate a sales forecast for sales generated. Not profit/loss; only sales made. Oracle's calculation shows some examples but I'm not sure if that's the ...
1
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1answer
588 views

Strategy for accounting personal finance in multiple currency?

I have started to budget and track my income and expenses using a simple spreadsheet. It have a better overview of where my money is going, but due to my work history I have money spread over ...
1
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1answer
73 views

How U.S. Depreciation works Explain in brief? [closed]

As per the my Research I came to know few terms about the U.S. Depreciation. Modified Acclerated Cost Recovery System (MARCS) Sub Divided into two terms- General Depreciation System (GDS) ...
1
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2answers
2k views

What is the meaning of realization in finance?

The definition of "realization" is well defined by multiple sources in accounting terms while we google it. But, can someone explain in terms of real life example that suits the meaning of ...
4
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1answer
337 views

Credit card creditors have two approaches to handling interest

Most credit cards calculate interest at the end of the cycle and add it to the balance: this reduces the available credit. As an extreme case, when this goes over limit the cardholder is required to ...