Bookkeeping 101

Line 23 of Form 1040. Two lines on Form 1040 actually refer to your tax liability. Line 16 tells you the total tax you owe for the year, then line 23 tells you how much of that amount is still outstanding. Payments you’ve already made appear on line …

In most instances, you will be asked to verify or explain specific issues in question on your tax return, such as income figures or deductions. Depending on the circumstances, you may be able to respond to the audit via mail, though in some cases, th…

The Board decides on changes in discount rates after recommendations submitted by one or more of the regional Federal Reserve Banks. The FOMC decides on open market operations, including the desired levels of central bank money or the desired federal…

Calculated intangible value is a method of valuing a company’s intangible assets. Intangible assets include patents and other intellectual property. A brand is an identifying symbol, logo, or name that companies use to distinguish their product from …

Thus, the use of debits and credits in a two-column transaction recording format is the most essential of all controls over accounting accuracy. Accountants record increases in asset, expense, and owner’s drawing accounts on the debit side, and they …

The name Australia has been applied to two continents. Originally, it was applied to the south polar continent, or sixth continent, now known as Antarctica….

If you are wondering what the cash value of your life insurance policy is, or how much money you will get if you cash out your policy, you need to find out the cash surrender value. If you have a 25-year term life insurance policy, the policy most li…

The relationships that we have in our lives help to form who we are as a person; who we surround ourselves with speaks mountains about us. Our friends represent who we wish to become, who we identify with and who we care about….

This is because their cost is so low that it is not worth expending the effort to track them as an asset for a prolonged period of time. If the decision is made to track supplies as an asset, then they are usually classified as a current asset. To be…

A closing entry is a journal entry made at the end of accounting periodsthat involves shifting data from temporary accounts on the income statement to permanent accounts on the balance sheet. Temporary accounts include revenue, expenses, and dividend…