Accounting Terminology

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Accounting Terminology

If I get work done on my house, can I use it as a tax deduction?

Asked Thursday, February 23, 2012 by an anonymous user
Improvements to your Residence are not deductible.
The costs are added to your initial cost basis to calculate your increased adjusted cost basis.
Your increased cost basis will be used in the year of sale of your residence to determine the gain on sale.
Improvements to your Rental property are deductible as a repair or a depreciable capital improvement.
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Accounting Terminology

Accrual Basis Accounting

Asked Sunday, January 29, 2012 by an anonymous user
The method of keeping accounts which shows all expenses incurred and income earned for a given period of time, even though such expenses and income may not actually have been paid or received in cash during the same period of time.
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Accounting Terminology

Accounts Receivable

Asked Sunday, January 29, 2012 by an anonymous user
Amounts due the company on account from customers who have bought merchandise or received services. Accounts Receivable is a current asset on the Balance Sheet.
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Accounting Terminology

Accounts Payable

Asked Sunday, January 29, 2012 by an anonymous user
Obligations to pay for goods or services that have been acquired on open accounts from suppliers. Accounts Payable is a current liability in the Balance Sheet.
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Accounting Terminology

Balance Sheet

Asked Sunday, January 29, 2012 by an anonymous user
Statement, at a particular point in time, of the financial position of a business or organization. This is generally divided into three parts: assets, liabilities and ownership, or equity. Also known as Statement of Financial Position.
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Accounting Terminology

Statement of Cash Flows

Asked Sunday, January 29, 2012 by an anonymous user
A financial statement showing the impact of operating, financing and investing activities effecting the cash position of the company. Also known as the statement of Changes in Financial Position.
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Accounting Terminology

Retained Earnings (Accumulated Deficit)

Asked Sunday, January 29, 2012 by an anonymous user
Cumulative net incomes of a corporation less losses and dividend distributions to shareholders, profits not distributed is referred to Retained Earnings. If the accumulated earnings are exceeded by losses, then it is referred to as Accumulated Deficit. It is reflected in the equity section of the balance sheet.
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Accounting Terminology

Net Worth

Asked Sunday, January 29, 2012 by an anonymous user
The amount of asset value exceeding total liabilities.
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Accounting Terminology

Income Statement ( Statement of Profit and Loss)

Asked Sunday, January 29, 2012 by an anonymous user
A financial statement summarizing revenues, expenses, gains and losses for a stated period of time. The income statement is also known as a profit & loss statement, statement of earnings, statement of income and expenses or statement of operations.
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Accounting Terminology

Fiscal Year

Asked Sunday, January 29, 2012 by an anonymous user
A period of one year for which financial statements are prepared that may, or may not, coincide with the calendar year. Any twelve-month period used by a business as its accounting period.
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