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Finance Formulas / July 19, 2018 / Kenley Hopper

The main thing to understand in managerial accounting is the difference between revenues and profits. Not all revenues result in profits for the company. Many products cost more to make than the revenues they generate. Since the expenses are greater than the revenues, these products great a loss—not a profit.

Otherwise, an annuity that changes the payment andor rate would need to be adjusted for each change. An annuity that has its first payment due at the beginning would use the annuity due payment formula and the deferred annuity payment formula would have a payment due at a later date.

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