Underapplied Overhead.

Underapplied overhead occurs when the total actual overhead incurred is less than the total applied overhead. This can happen when the overhead rate is applied to fewer units of production than were actually produced during the period. The amount of underapplied overhead is calculated by subtracting the total actual overhead from the total applied overhead. … Read more

Nonbank Financial Institutions: What They Are and How They Work.

Nonbank financial institutions are organizations that provide financial services but don’t take deposits or extend loans. What is the importance of nonbank financial institution in our financial system? Nonbank financial institutions (NBFIs) play an important role in the financial system by providing credit and other financial services to households and businesses. NBFIs include insurance companies, … Read more

Stockholders’ Equity: What It Is, How To Calculate It, Examples.

What is Stockholders’ Equity? Stockholders’ equity is the portion of a company’s assets that belongs to the shareholders. It can be calculated by subtracting the company’s liabilities from its assets. Examples of Stockholders’ Equity Some examples of items that would be included in stockholders’ equity are common stock, paid-in capital, and retained earnings. Do shareholders … Read more