Crazy accounting definitions

Book value: Value placed on an asset for accounting purposes that bears no relation to its true worth.

Budgeting: An exercise where the unknowledgeable force the unwilling to predict the impossible based entirely on the inaccurate.

Credit: Something that accountants rarely get.

FIFO: 'First In, First Out', a method of valuing stock. Also a method never used when accountancy firms are considering redundancies.

Goodwill: Concept invested to explain the difference between the value of a company and the price another company paid for it.

LIFO: 'Last In, Last Out', a method of valuing stock. Also a method frequently used when accountancy firms are considering redundancies.

Liability: Money or goods owed by a company. Also a first-year audit trainee.

Prudence: A fundamental accounting principle, designed to lend dignity to inaccuracy.

Reconciliation: The art of proving that one inaccurate figure exactly agrees with another inaccurate figure.


Taken from 'The Bluffer's Guide to Accountancy'



* This article was originally published here Check out https://www.johannakimball.com

Comments

Post a Comment

Popular posts from this blog

Just Married: How to Fill Out Your W-4

Image
Big life events often trigger tax changes, and getting married is one of them. Though often overlooked, one of the most important steps you should take after getting married is updating your Form W-4 with your employer. Should I fill out a new W-4 when married? Yes! Your W-4 tells your employer how much tax to withhold from your paychecks. If you continue to list “single” on your W-4, your employer will likely withhold more tax from your paychecks than they would if you checked “married.” Updating Form W-4 will ensure you and your spouse have the right amount of taxes withheld, potentially giving you more money in your pocket throughout the year. How do I fill out a W-4 when married? When you get married, your financial situation may change, and you’ll need to account for this on your W-4. Here’s what you need to keep in mind. 1. Update personal information The name on your tax return must match your name on file with the Social Security Administration (SSA). If you plan on c
Read more

Should You Sell Your Investments Before the End of the Year?

Image
With the holidays just around the corner and the end of 2021 approaching fast, you might be wondering: should I sell my stocks before the end of the year? Maybe you’re looking for a little extra cash to help cover all the money you spent on holiday gifts, or perhaps you simply want to give yourself the gift of a potential tax deduction next year. Whatever the reason, you’re wondering how selling investments might affect your taxes. Don’t panic! We’ve compiled some useful information to help you decide what course of action to take. Paying taxes on your capital gains If you sell your investments for more than they’re worth because they’ve appreciated in the time you’ve owned them, you’ll report what’s called a capital gain. You can make capital gains from investments like stocks, bonds, and real estate. The amount of tax you are going to pay for capital gains depends upon whether you had a short-term or long-term capital gain. Short-term gains are for less than one year, and long
Read more

Tax Information for Different Tax Filing Stages

Image
The tax information you need all in one place. We’ve put together a master list of helpful articles for your tax situation, whether you’re preparing to file, in the process of filing, or waiting for your refund. If you’re self-employed, we have a section for that too. Let’s dive right in. Individual filers Stage 1: Preparing to file Organize Your Way to Tax Day: 5 Steps for Success : Get ahead of that pre-filing stress and set yourself up for success this tax season with these tips for getting organized. Tax Preparation Checklist : Not sure what information and tax documents you’ll need to have handy when filing? This checklist will help ensure you have everything you’ll need to complete your income tax return. Top 6 Tax Changes You Should Know About for 2022 : What’s changed from last year? Here are the top six changes you should be aware of, including changes to the Child Tax Credit, Earned Income Tax Credit, and more. Top 7 Reasons to Switch to TaxAct : Why file with TaxA
Read more