Accounting formulas are the formulas which are used to calculate different accounting statements & analysis. Accounting formulas are used by accountants to prepare financial statements of the business. Accounting formulas are important to understand for accurate calculations of the company’s statement.
The Present Value factor that is also known as PV factor is a numerical figure having a value less than one that is used to derive the present value of the cash receipt that is due on the future date. The cash receipts which
The aggregate difference between the all types of inventory of the last reporting period and the current reporting period is called inventory change. In most of the companies where the financial statements are issued on yearly biases the inventory change span also spreads over
The efficiency is the comparison of the output to the input of a given operation. This means that what is the ratio between the given output and the input of a certain operation. The comparison of the output and the input can be done
Straight Line Method of Depreciation is a method of calculating depreciation of an asset where the actual cost of the asset is depreciated over the entire useful life of the asset. In order to calculate depreciation by this method the difference between the cost
Standard Costing and Variance Analysis Formulas: Learning Objective of the article: Learn the formulas to calculate direct materials, direct labor and factory overhead variances.(Formula of Variance ) This is a collection of variance formulas / equations which can help you calculate variances for direct materials,
Price Earnings Ratio (PE Ratio): Definition: Price earnings ratio (P/E ratio) is the ratio between market price per equity share and earning per share. The ratio is calculated to make an estimate of appreciation in the value of a share of a company and is widely used by
Definition: Expense ratios indicate the relationship of various expenses to net sales.The operating ratio reveals the average total variations in expenses. But some of the expenses may be increasing while some may be falling. Hence, expense ratios are calculated by dividing each item of