Accounting Standards Label

Accounting FormulaAccounting Formula

Finance Formulas / January 3, 2018 / Heaven Estes

Accounting profit uses realized or actual gains and losses and is calculated according to generally accepted accounting principles (GAAP). It is a company's total revenue reduced by the explicit costs...

Accounting Ratios FormulasAccounting Ratios Formulas

Finance Formulas / February 9, 2018 / Kenzie Kennedy

Consider the following example to illustrate the concept. Assume hypothetical company BigBox has operating income or earnings before interest and taxes (EBIT) of \$100 million in Year 1, with interest...

Accounting Formula SheetAccounting Formula Sheet

Finance Formulas / January 6, 2018 / Alia Marquez

It's important to note that the CFS is distinct from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that...

Amortization Payment FormulaAmortization Payment Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

There are many ways for a company to access financing, and this is particularly so if a company has realistic expectations of future earnings against which it might borrow. For...

Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

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...

Retail Markup FormulaRetail Markup Formula

Finance Formulas / August 5, 2018 / Aniyah Booth

The 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...

Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

Debt ratio is a solvency ratio that measures a firm’s total liabilities as a percentage of its total assets. In a sense, the debt ratio shows a company’s ability to...

Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

The total asset turnover ratio calculates net sales as a percentage of assets to show how many sales are generated from each dollar of company assets. For instance, a ratio...

Contribution Margin Per Unit FormulaContribution Margin Per Unit Formula

Finance Formulas / August 5, 2018 / Briana Leonard

There are many ways for a company to access financing, and this is particularly so if a company has realistic expectations of future earnings against which it might borrow. For...

Inventory Cost FormulaInventory Cost Formula

Finance Formulas / August 5, 2018 / Alia Marquez

lifetime value of a customer and the cost of acquiring that customer. This is a particularly crucial measure for subscription based companies....