Overview of Financial Statements

After preparing your adjusted trial balance, the next step in the accounting cycle is to prepare your financial statements. Learn about the balance sheet, income statement, statement of cash flow, and retained earnings statement in this tutorial. Continue reading

Variable Costs

Variable costs are expenses that increase or decrease as a direct result of increases or decreases in sales or production volume. Learn more about variable cost in this tutorial. Continue reading

Fixed Costs

Fixed costs are defined as any cost or expense that does not vary with changes in the level of business activities like sales or production. Learn more about fixed cost in this tutorial. Continue reading

Break-Even Analysis and the Break-Even Point

When considering the production or sale of a new product or service, businesses often will use break-even analysis and the break-even point to see whether its financially feasible. See how it works in this free tutorial. Continue reading

Intro Business Quiz

How well do you know your business terms? Take the plunge with this fun quiz — ten questions randomly selected from accounting, economics, finance, management, marketing, business organization, and human resources. Continue reading

How to Read a Bar Graph

This brief tutorial explains the various parts of a bar graph and shows how it is used to visually represent information. Continue reading

Fixed Assets Turnover Ratio

The fixed assets turnover ratio measures how fixed assets are used to generate sales, by comparing sales to net fixed assets. This interactive tutorial walks you through the calculations as well as where to find the numbers on your financial statements. Continue reading

TIE Ratio

The TIE Ratio shows the ability to pay interest charges out of earnings. (TIE stands for times interest earned.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements. Continue reading

Current Ratio

This interactive tutorial explains the current ratio by walking you through the steps, including where to find Current Assets and Current Liabilities on the Balance Sheet. It even lets you use your own numbers, so you can check your homework answers! Continue reading

Cash Flow: Quiz

Study terms from the cash flow statement like net cash, prepaid expenses, payment of dividends, and more with this fun quiz. Continue reading