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Accounting Formula Label

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Liabilities FormulaLiabilities Formula

Finance / July 28, 2018 / Hana Cannon

All business expenses can be divided into two types of costs: fixed and variable. Fixed costs are those expenditures that do not change based on sales (or lack thereof). That...

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Total Capital FormulaTotal Capital Formula

Finance / August 2, 2018 / Alejandra Tanner

The basic idea behind doing a break-even analysis is to calculate the point at which revenues begin to exceed costs. To do this, one must first separate a company's costs...

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Sales Revenue FormulaSales Revenue Formula

Finance / August 1, 2018 / Emmalynn Leach

Fixed costs can be assets like buildings and equipment. For example, a beverage company that bottles water is going to need a physical building and an assembly line that includes...

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Finance / August 5, 2018 / Alicia Franklin

Equity is the value of the business left to its owners after the business has paid all liabilities. Sometimes, there are different classes of ownership units, such as common stock...

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Finance / August 5, 2018 / Emmalynn Leach

Because every bond and bond fund has a duration, those numbers can be a useful tool that you and your financial professional can use to compare bonds and bond funds...

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Finance / August 5, 2018 / Parker Hardy

There are two basic parts to the cost of a car loan the principal and the interest. The principal is the negotiated cost of the vehicle itself. The interest refers...

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Finance / August 6, 2018 / Andi Barnett

Depending on your reason for valuing a business, you have several options for coming up with a basic company worth. If you need to sell the business quickly, you can...

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Finance / August 5, 2018 / Hana Cannon

Equity is the value of the business left to its owners after the business has paid all liabilities. Sometimes, there are different classes of ownership units, such as common stock...

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Finance / August 5, 2018 / Andi Barnett

The accounting equation or balance sheet equation forms the building blocks for the entire double entry accounting system. It shows that every asset owned by the company is equal to...

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Finance / August 5, 2018 / Hanna Hunt

Earnings Before Interest and Taxes (EBIT) measures the profit a company generates from its operations, making it synonymous with "operating profit." By ignoring tax and interest expenses, it focuses solely...

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