Absorption costing is an easy and simple way of dealing with fixed overhead production costs. It is assuming that all cost types can allocate base on one overhead absorption rate. The absorption rate is usually calculating in of overhead cost per labor hour or machine hour. The products that consume the same labor/machine hour will […]

One of the key components of financial reporting is the preparation of comprehensive financial statements, including the balance sheet, income statement, and cash flow statement. These documents provide insights into the dealership’s assets, liabilities, revenues, and expenses, offering a holistic view of its financial position. Regular audits, either internal or external, can further enhance the […]

Another popular calculation that potential investors or lenders might perform while figuring out the health of your business is the debt to capital ratio. No one likes debt, but it’s an unavoidable part of running a small business. Accountants call the debts you record in your books “liabilities,” and knowing how to find and record […]

Analyze a company’s financial records as an analyst on a technology team in this free job simulation. Unearned revenue from the money you have yet to receive for services or products that you have not yet delivered is considered a liability. Below is a portion of Exxon Mobil Corporation’s (XOM) balance sheet as of September 30, 2018. […]