# 3 Basic Accounting Principles Label

## Accounting Formula SheetAccounting Formula Sheet

Finance Formulas / January 6, 2018 / Alia Marquez

Economic profit includes the opportunity costs a company loses or gains by making a decision to pursue one avenue towards revenue, thus passing by a different opportunity which also might...

## Inventory Cost FormulaInventory Cost Formula

Finance Formulas / August 5, 2018 / Alia Marquez

The cash ratio is the ratio of a company's total cash and cash equivalents (CCE) to its current liabilities. The metric calculates a company's ability to repay its short-term debt;...

## Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

An individual starts a business and incurs startup costs of \$50,000. During the first year of operation, the business earns a profit of \$75,000. If the individual had stayed at...

## Retail Markup FormulaRetail Markup Formula

Finance Formulas / August 5, 2018 / Aniyah Booth

Economic profit is the difference between the revenue a firm earns from sales and the firm’s total opportunity costs. It’s important to distinguish between accounting profit and economic profit. Accounting...

### Contribution Margin Per Unit FormulaContribution Margin Per Unit Formula

Finance Formulas / August 5, 2018 / Briana Leonard

The accounting equation, also known as the balance sheet equation, is written as Assets = Liabilities + Equity and underpins the balance sheet's foundation. The accounting equation is the foundation...

#### Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

Compound interest is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.The total initial amount of the...

##### Amortization Payment FormulaAmortization Payment Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

In corporate finance, the Debt-Service Coverage Ratio (DSCR) is a measure of the cash flow available to pay current debt obligations. The ratio states net operating income as a multiple...

###### Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

Diluted EPS is a calculation used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Convertible securities are all outstanding convertible preferred...

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