If a company has seasonal fluctuations, a simple average based on only the beginning and end of year amounts is likely to be misleading. This form directs you to insert the amounts from the end of each of 13 consecutive months. As a result, the seasonal fluctuations will be part of the average.
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For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
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