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Author Archives: admin
What Are Rental Vacancy Rates?
The American Housing Survey (AHS) is the most comprehensive national housing survey in the United States. The AHS survey is sponsored by the Department of Housing and Urban Development (HUD) and conducted by the U.S. Census Bureau. National data are collected … Continue reading
Posted in Rental Market
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Understanding Short-Term Securities and Liabilities
Trading Securities. Debt and equity securities purchased with excessive cash for the purpose of resale in the near term. As such, they are current assets. They are reported at fair market value using the mark-to-market method. The accountant will make … Continue reading
Are We Experiencing A 10-Year Depression?
The eight year bull market from 1921 to 1929 resulted in a three year bear market from 1929 to 1932, which was a 33% bear market drop. Due to Fed intervention, we’ve seen a thirty three year bull market … Continue reading
Posted in Stock Market
Tagged 10-year depression, current account deficit, dow theory, sell-signals
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How To Depreciate Long-Term Assets?
Land. Includes purchase price, real estate commissions, closing costs, attorney fees, recording fees, land use due diligence, clearing, grading, filling, landscaping, special assessments (pavement and sewer). Improvements with limited lifespans such as fences and parking would go under Land … Continue reading
Understanding Basic Cost Accounting
In accounting terms, the term cost does not equate to the meaning of expense. A cost item requires the expenditure of resources to generate revenue during a specific period of time. Asset Costs/Unexpired Cost. Expending resources or incurring liabilities to … Continue reading
Posted in Accounting
Tagged asset costs, capitalized cost, cost drivers, cost objects, differential costs, direct labor, direct vs. indirect costs, inventoriable costs, manufacturing costs, manufacturing overhead, opportunity costs, period expenses, product costs, raw materials, sunk costs, understanding basic cost accounting, unexpired costs
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How To Calculate WACC?
The weight average cost of capital calculates the return necessary to satisfy the bondholders and stockholders (relates to the risk/return ratios). Equity Market Capitalization. Use the market value and not the book value for equity portion of the WACC calculation. The build-up approach factors the … Continue reading
Will The End Of QE2 Trigger The Next Depression?
It’s official. The Fed decided not to renew QE2 and its time to bring back the depression forecasts that I’ve been making all year on this blog. In the Fed Chairman’s speech, Bernanke victoriously claimed an end to the deflationary threat … Continue reading
How To Prepare Financial Statements Without Quickbooks
The accounting cycle is the process from a when a business transaction occurs all the way to the financial statement preparation process. Step 1: Identify a business transaction and find the supporting source document such as a receipt or invoice. … Continue reading
