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Raw materials, work-in-progress items, and finished goods can all fall into this category if they remain unsold or unused for extended periods. The reasons for obsolescence can vary widely, from technological advancements rendering products outdated to shifts in consumer demand making certain items less desirable. The inventory obsolete is the cost that will present on

The average jumbo 30-year mortgage rate marched in place Thursday, holding at a three-week low of 6.73%. Last fall, jumbo 30-year rates plummeted to 6.24%, their cheapest level in 19 months. Meanwhile, it’s estimated their 8.14% peak in October 2023 was the most expensive jumbo 30-year average in 20-plus years. In contrast, last September saw

A memorandum in accounting refers to a document with a short message to be entered in the general journal and the general ledger account. The entry of a memorandum refers to entering the memorandum’s message in a general ledger. This process is responsible for data flows between sales and distribution, as well as financial accounting

The formula comes in handy to compute the sum of money available to pay debt and equity holders. As seen from the above formula, earnings generated are not adjusted for taxes and interests. Free cash flow to the firm is the cash that is left over after all depreciation expenses, taxes, working capital, and investments

The 9th step of the accounting cycle is the preparation of the post-closing Trial Balance. After closing entries ledger balance of income and Expenses become Zero. These processes are rotated continuously in every accounting period. So, it is said that the accounting cycle is the continuous process of recording and processing all transactions of an

Seven states have a flat income tax, and of those seven Massachusetts has the highest state income tax rate. While the tax rate is set explicitly by the Massachusetts legislature, the Massachusetts personal exemption is indexed to inflation and changes every year. Money withdrawn from most private pensions and retirement accounts, including 401(k)s and traditional

It is important to note that we apply the depreciation rate on the full cost rather than the depreciable cost (cost minus salvage value). Unlike the straight-line method, the double-declining method depreciates a higher portion of the asset’s cost in the early years and reduces the amount of expense charged in later years. For example, if