The accountant, or the CPA, can pass this as an annual journal entry in the books, with debit and credit to the defined chart of accounts. Since a license is an intangible asset, it needs to be amortized over the five years prior to its sell-off date. In general, to [...]

However, the higher net income means the company would have a higher tax liability. The average cost inventory valuation method uses an average cost for every inventory item when calculating COGS and ending inventory value. FIFO is a widely used method to account for the cost of inventory in your [...]