Mortgages & Loans

What is a Bank collection float ?

Asked Thursday, January 11, 2001 by an anonymous user

CPA Answer:

Bank collection float is the time that passes between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank.
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Investments & Financial Planning

In relation to mutual funds, what is backdating?

Asked Thursday, January 11, 2001 by an anonymous user

CPA Answer:

It is a feature allowing fund holders to use an earlier date on a letter of intent to invest in a mutual fund in exchange for a reduced sales charge. It Gives retroactive value to purchases from the earlier date.
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Investments & Financial Planning

Does Australia have an exchange ?

Asked Thursday, January 11, 2001 by an anonymous user

CPA Answer:

Australian Stock Exchanges Australian Securities Exchange (ASX) Bendigo Stock Exchange (BSX) NSX National Stock Exchange of Australia
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Taxes - My Tax Return

What exactly is an Audit ?

Asked Thursday, January 11, 2001 by an anonymous user

CPA Answer:

The Advance Computerized Execution System is a system run by Nasdaq. The Advance Computerized Execution System automates trades between order entry and market maker firms that have established trading relationships with each other. Securities are designated as specified for automatic execution
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Investments & Financial Planning

How is accrued interest calculated on a bond ?

Asked Wednesday, January 10, 2001 by an anonymous user

CPA Answer:

Interest that has accumulated between the most recent payment and the sale of a bond or other fixed income security.
At the time of a sale, the buyer pays the seller the bonds price plus any "accrued interest".
The accrued interest is calculated by multiplying the coupon rate by the fraction of the coupon period that has elapsed since the last payment.
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Financial Statements

What is an auditor's qualified opinion ?

Asked Wednesday, January 10, 2001 by an anonymous user

CPA Answer:

An auditor's opinion expressing certain limitations of an audit.
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Financial Statements

What is an auditor's adverse opinion ?

Asked Wednesday, January 10, 2001 by an anonymous user

CPA Answer:

An independent auditor's opinion expressing that a firm's financial statements (balance sheet, income statement, cash flow statement)do not reflect the company's position accurately.
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Payroll Taxes

W-2 - Company out of business

Asked Tuesday, January 09, 2001 by an anonymous user

CPA Answer:

Go to your local CPA or go to the IRS website to obtain Form 4852 which is a substitute for form W-2 the wage and tax statement. Using your pay stubs and bank deposit slips calculate to your best ability your gross wages, federal and state withholding, social security and Medicare withholdings. You will then attach Form 4852 to your tax return.
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Form W-2

The company I worked for during the year went out of business and never prepared W-2 forms ?

Asked Tuesday, January 09, 2001 by an anonymous user

CPA Answer:

If, even after nudging from the IRS, your employer doesn't send you a replacement W-2 in time for you to file your return, you may file using Form 4852 in place of your missing wage statement.
After you complete the form, attach it to your tax return in place of your absent W-2. A copy of Form 4852 also should satisfy your state tax collector for those returns.
Using Form 4852 instead of an original W-2 may delay your refund while the IRS verifies the information you provided.
In cases where an employer has filed for bankruptcy or ceased operations, the IRS suggests you send a copy of Form 4852 to your local Social Security Administration office.
This should ensure that you get proper credit for the Social Security and Medicare taxes you paid so that your checks will be correct when it comes time to collect these benefits.
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