Accounting Equation Assets = Liabilities + Equity

When a firm issues common shares and preferred shares in addition to its retained operating profits, this is referred to as shareholder equity, stockholder equity, or shareholder net worth. Ever wondered how much cash you as a shareholder would get if a firm was...

Absorption Costing What Is It, Vs Variable Costing

However, these costs are not included in the calculation of product cost per the AC. In contrast to the variable costing method, every expense is allocated to manufactured products, whether or not they are sold by the end of the period. Variable costing will result in...