By Robert T. Kiyosaki
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Additional info for Retirate Joven y Rico
That’s obvious. So a fair question is this: How does what I’ve said so far relate to income tax return preparation? This is a tough question to answer. Tax laws typically don’t map to generally accepted accounting principles. Generally accepted accounting principles aren’t the same thing as income tax law. However, if you use good basic accounting practices as you operate QuickBooks, you get financial information that you can use to easily prepare your tax returns, especially if you get some help from your certified public accountant (CPA).
Your computer (with the help of QuickBooks) does this math easily. Almost a Real-Life Example To cement the concepts that I talk about in the preceding paragraphs of this chapter, I want to quickly step through the journal entries, or bookkeeping transactions, that you would record in the case of the hot dog stand business discussed in the preceding chapter. To start, you need to know that the balance sheet shown in Table 2-2 is the balance sheet at the start of the day. info Double-Entry Bookkeeping When I learned about double-entry bookkeeping, I stumbled over the terms debit and credit.
No question there, right? info 20 Reviewing the Common Financial Statements The financing activities of the statement of cash flows show how firm borrowing and firm debt repayment affect the firm cash flow. If the hot dog stand b usiness uses its profits to repay the $1,000 loan payable — and in this case, this is what happened — this $1,000 cash outflow shows up in the financing activities portion of the statement of cash flows as a negative $1,000. The top portion of the statement of cash flows is often the trickiest to understand.
Retirate Joven y Rico by Robert T. Kiyosaki