Finance Formulas / July 19, 2018 / Aniyah Booth
Average total assets is defined as the average amount of assets recorded on a company's balance sheet at the end of the current year and preceding year. This figure is most commonly used in comparison to the total sales figure for the current year, to determine the amount of assets required to support a certain amount of sales. This is a useful comparison, since a low asset level in comparison to sales implies that the management team is making highly efficient use of its assets in running the business.
If you have credit cards or bank loans for your home, you pay interest (or a finance charge) on that money at a specific percentage over the course of the year. This is called APR, or annual percentage rate. Calculating your APR on your credit cards takes only a few minutes if you know some key factors and a little algebra. The APR on mortgage loans, however, is different from the simple interest rate because of additional charges or fees to you for securing your loan.
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