Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

You are already subscribed. This offer is not available to existing subscribers.
Step 2: Please check your email and click the confirmation link.

197,292
Subscribers

Questions & Answers (Q&A)

Harold Averkamp, CPA, MBA

All 1,087 questions have been answered personally by Harold Averkamp, CPA, MBA. Harold is the sole-author of all the instructional content found on AccountingCoach.com.
Read More…

Q&A Archive (1,087)

How should I study accounting?

Here are eight suggestions on how to study accounting: Stay current. Don't skip class, don't skip an assignment. Not only are accounting concepts related, they build on earlier concepts. Postponing and cramming is the wrong way to study accounting. Do not delay… Read More.

What is the employer's Social Security tax rate for 2016?

The employer's Social Security tax rate for 2016 is 6.2% of each employee's first $118,500 of wages, salaries, etc. If an employee's wages, salaries, etc. are greater than $118,500, the amount that is in excess of $118,500 is not subject to the… Read More.

What is the self-employed person's FICA tax rate for 2016?

The self-employed person's FICA tax rate for 2016 is 15.3% on the first $118,500 of net income and then 2.9% on the net income that is in excess of $118,500. (The percentages and the earnings limit are unchanged from 2015.) The self-employed… Read More.

What is a stockholder?

A stockholder (also known as a shareholder) is the owner of one or more shares of a corporation's capital stock. A stockholder is considered to be separate from the corporation and as a result will have limited liability as far the corporation's… Read More.

What is a capital account?

In accounting and bookkeeping, a capital account is one of the general ledger accounts used to record 1) the amounts that were paid in to the company by an investor, and 2) the cumulative amount of the company's earnings minus the cumulative… Read More.

What is an outstanding deposit?

An outstanding deposit refers to a company's receipts (cash, checks from customers, etc.) which have been recorded by the company, but the amount will appear on its bank statement at a later date. An outstanding deposit is also known as a deposit… Read More.

What is the employee's Social Security tax rate for 2016?

The employee's Social Security tax rate for 2016 is 6.2% of the first $118,500 of wages, salaries, etc. An employee's 2016 earnings that are in excess of $118,500 are not subject to the Social Security tax. (The percentage and earnings limit are… Read More.

What is the maximum amount of earnings subject to the Social Security tax in 2016?

The maximum amount of an employee's 2016 earnings (and a self-employed person's net income) that is subject to the Social Security tax is $118,500. This amount is also known as the Social Security annual limit, wage base, contribution and benefit base, ceiling,… Read More.

What is zero-based budgeting?

Zero-based budgeting, or ZBB, is a rigorous budgeting process that requires every dollar of every expense to be justified even if the expense has been occurring for many years. For example, if a company has been spending $100,000 each year for the… Read More.

What are dividends?

In accounting, dividends often refers to the cash dividends that a corporation pays to its stockholders (or shareholders). Dividends are often paid quarterly, but could be paid at other times. For a dividend to be paid, the corporation's board of directors must… Read More.