**Finance Formulas** / August 2, 2018 / Rory Wise

read moreFor example, an investor starts her own business with $100,000 and earns $120,000 in profits during the first year. Her accounting profit is $20,000. But that same year, she could...

**Finance Formulas** / August 5, 2018 / Briana Leonard

read moreThe accounting equation is sometimes referred to as the "basic accounting equation" or balance sheet equation could also be written as Shareholders' Equity = Assets – Liabilities, where the statement...

**Finance Formulas** / August 5, 2018 / Avalynn Orr

read moreThe 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...

**Finance Formulas** / August 5, 2018 / Alia Marquez

read moreEconomic 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...

*Finance Formulas* / August 4, 2018 / Alia Marquez

read moreBreakeven quantity is the number of incremental units that the firm needs to sell to cover the cost of a marketing program or other type of investment, says Avery. If...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

read moreCompound 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...

*Finance Formulas* / August 4, 2018 / Alia Marquez

read moreThe higher the DFL, the more volatile earnings per share (EPS) will be. Since interest is a fixed expense, leverage magnifies returns and EPS, which is good when operating income...

__Finance Formulas__ / August 5, 2018 / Kenley Hopper

read moreEvery business has assets, or things that the company owns and uses in its business in order to make money. These assets can include not just tangible items like cash,...

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