**Finance Formulas** / January 6, 2018 / Alia Marquez

read moreAn accounting ratio compares two line items in a company’s financial statements, namely made up of its income statement, balance sheet and cash flow statement. These ratios can be used...

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

read moreGiven that the debtequity ratio measures a company’s debt relative to the total value of its stock, it is most often used to gauge the extent to which a company...

**Finance Formulas** / August 5, 2018 / Kenley Hopper

read moreThe current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. To gauge this ability, the current ratio considers the current total assets...

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

read moreThe Capital Adequacy Ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. The Capital Adequacy Ratio, also known as...

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

read moreThe 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...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

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 4, 2018 / Alia Marquez

read moreWhen the cross elasticity of demand for product A relative to the change in the price of product B is negative, it means that the quantity demanded of A has...

__Finance Formulas__ / August 4, 2018 / Alia Marquez

read moreAnnual Percentage rate (APR) explains the cost of borrowing with a variety of loans, including credit cards and mortgage loans. Costs are quoted as a percentage. For example, if your...

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