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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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 ...
8
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2answers
685 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 ...
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1answer
2k views

Does Apple have $0 of treasury stock?

I cannot find any information on Apple owning treasury stock. Their balance sheet implies they have none. However I assume some may be held through holding companies. Does Apple have any treasury ...
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2answers
223 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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1answer
424 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 ...
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2answers
156 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
516 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 ...
7
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1answer
254 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 ...
9
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1answer
1k 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:
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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 ...
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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 ...
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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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1answer
154 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 ...
0
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1answer
244 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 ...
2
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1answer
92 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 ...
5
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2answers
173 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 ...
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2answers
795 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 | ...
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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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1answer
798 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/...
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2answers
125 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
530 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 ...
2
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1answer
165 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
621 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 ...
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?
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?
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1answer
111 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 ...
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1answer
693 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 ...
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1answer
93 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 ...
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1answer
627 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 ...
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1answer
74 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) ...
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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 ...
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1answer
1k views

How to post a coupon discount in the ledger

If I am interested in keeping track of the amount I have saved through coupon discounts, how can i Post the transaction on a ledger. Can't see discount falling into any category: asset, expense, ...
2
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1answer
127 views

Income tax for a tradesman / builder

Suppose I employ a builder to do a job for me. For this, he charges £100 for labour, and £200 for materials at cost. Suppose his income tax is charged at 20%. So, he will give £20 in income tax from ...
2
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1answer
3k views

Is a fee note the same as an invoice?

I pay an accountant £800 a year to do the usual accountancy things. I've received a fee note from him for filing the annual confirmation statement. So, is a fee note the same as an invoice? Do I ...
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0answers
2k views

How to include loan repayments in income statement?

I realize I'm kind of lumping an income statement and statement of cash flows together, but this is still the easier way of doing things for my particular use case. I'm trying to do an income ...
3
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1answer
254 views

Plumber charging VAT on parking

I have a plumber do some work for me recently, and in the invoice he included the parking cost. This was for on-street parking, which I know has no VAT applied to it as it is a direct payment to the ...
2
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1answer
4k views

Is VAT applied when a tradesman charges for materials?

I have been employing a plumber to do some work in my bathroom, and recently received the invoice. This consists of a charge for the labour, plus a list of materials used for the job, which he is also ...
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1answer
65 views

Does Profit and loss has break down on previous/current tax year or full calendar year?

I'm doing my personal tax return at tax.service.gov.uk for my Limited company and it may be sound very simple question, but it's confusing for me. Given the following Profit and loss table for tax ...
3
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1answer
226 views

PF transfer taxed under 194A India

I have changed my job (previously TCS) in August 2015. I Transferred my PF in May 2016. As far I know PF is not taxable. But in my Form 26AS I see 800(10% of interest accumulated from September 2015 ...
3
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3answers
693 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" ...
4
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2answers
189 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 ...
0
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1answer
3k views

Difference between double declining balance and reducing balance

As I understand it if we have a double declining balance asset worth £10,000, declining over 10 years, we will depreciate by an annual rate of 20%. But I have also been told that double declining is ...
0
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1answer
1k views

Accounting for foreign exchange transactions and difference between market rate and rate given

I am trying to find how to account for the change in exchange rate and the rate given to me by my bank. I understand the rate change between two dates is a foreign exchange gain or loss, but what ...
0
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1answer
87 views

Double entry accounts for money judgement award

I won a legal settlement in which the total amount to be paid to me will be done in instalments. Interest will accrue. I debited the principal and interest accruals to an asset account and credited ...
0
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1answer
125 views

How to categorize shared income?

I'm a total bookkeeping noob. My LLC has an agreement with another LLC where we split income coming from a particular source. As it happens the income comes to my business's bank account and then I ...
4
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1answer
338 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 ...
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1answer
7k views

Should written checks be accounted in Accounts Payable?

Should the checks I write be logged via my Accounts Payable account, or just directly from my Bank Asset account to my Expenses account? I see issues with both methods: Bank Asset => Expenses An ...
0
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1answer
108 views

Term for both debit and credit [closed]

This is a vocabulary question: What English term could be used to represent something that is either a debit or a credit in a transaction (without specifically saying which one it is)? Something like ...
3
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2answers
536 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 ...