In the area of property, the new divorce laws have brought about radical changes. Traditionally, in all but the few community-property states, the division of a couple’s property upon divorce was a simple matter. The spouse whose name was on the title to the property was the owner of the property. In most cases, this was the husband.
No-fault divorce is exactly what it sounds like. There is no “fault” involved in the grounds for divorce. Neither spouse must prove that the other spouse has been guilty of misconduct. In fact, any misconduct is essentially irrelevant to obtaining the divorce. Adultery and other forms of marital misconduct are generally no longer penalized by the law of divorce.… Read More »
There has been a sweeping revolution in divorce law in the United States during the past 35 years, and it is still under way. The changes brought about by this revolution have fundamentally altered the framework of how a divorce is obtained and how divorce affects spouses and children. These dramatic legal changes are, as yet, relatively unknown… Read More »
The following is a glossary of the most popular business, legal, and accounting terms:
Corporations are a separate entity under the law and as such are subject to taxation at both the state and Federal levels. In general corporations are subject to Federal income tax on the annual profits in many ways similar to the tax on individual income. However, there are significant differences.
One of the most difficult and complex accounting functions that small businesses face is their payroll. Because of the various state and Federal taxes that must be applied and the myriad government forms that must be prepared, the handling of a business payroll often causes accounting nightmares. Even if there is only one employee, there is a potential… Read More »
Asset and liability accounts are collectively referred to as Balance Sheet Chart of Accounts. This is because the information collected on them is used to prepare your business Balance Sheets. You will set up current and fixed asset accounts and current and long-term liability accounts. Types of current asset accounts are cash, short-term notes receivable, accounts receivable, inventory,… Read More »
These are the accounts that you will use to keep track of your expenses. Each separate category of expense should have its own account. Many of the types of accounts are dictated by the types of expenses which should be itemized for tax purposes. You will generally have separate accounts for advertising costs, utility expenses, rent, phone costs,… Read More »
These are accounts that are used to track the various sources of your company’s income. There may be only a few sources of income for your business or you may wish to track your income in more detail. The information which you collect in your income accounts will be used to prepare your Profit and Loss Statements periodically.… Read More »
The financial recordkeeping system that you will set up using this book is designed to be adaptable to any type of business. Whether your business is a service business, a manufacturing business, a retail business, a wholesale distributorship, or a combination of any of these, you will be able to easily adapt this simplified system to work with… Read More »