Definition:The accounting equation orbalance sheet equationforms the building blocks for the entire double entry accounting system. It shows that every asset owned by the company is equal to the claims (liabilities and equity) against the asset. The accounting equation looks like this. Asset = Lia...
What is the equation of a line that will be perpendicular to the equation 6x - 2y = 10 and passes through the point (-4,-7)? What is the equation for the line that is perpendicular to -7x + 8y = 6 through the point (1,-4)?
An equity risk premium is based on the idea of therisk-reward tradeoff. It is a forward-looking figure and, as such, the premium is theoretical. But there's no real way to tell just how much an investor will make since no one can actually say how well equities or the equity market ...
In general, risk is the product of likelihood times impact giving us a general risk equation of risk = likelihood * impact. IT risk specifically can be defined as the product of threat, vulnerability and asset value: Risk = threat * vulnerability * asset value What is a Threat? A threat...
Risk tolerance is your ability to stomach a decline in the value of your investments. How would you feel if the stock market experienced large declines?
What is the equation of the line tangent to the curve {eq}x^2 + y^2 = 100 {/eq} at the point (6,8)?Answer and Explanation:Consider a function {eq}y=f(x) {/eq} which is continuous and differentiable in the domain {eq}\left[ {a,b} \right]. {/...
What is the equation of equity?Accounting FormulaThe basic accounting formula is an equation that represents the balance between assets, liabilities, and owner's equity. These variables are closed to the balance sheet at the end of each fiscal year....
You may also notice that the equation for calculating the risk adjusted return is very similar to the equation for the security market line. They are basically the same equation with the SML equation being calculated with the beta (β) of the security instead of the ratio of the standard dev...
we can to identify something to record before we can record it. : ) For example, assume Sally purchases a truck from Bob’s Auto Mart for $10,000 and signs a 3-year $8,000note payable. This purchase is a business transaction that can be measured and changed theaccounting equation. Thu...
What Is the Equity Multiplier? The equity multiplier is a risk indicator that measures the portion of a company’s assets financed byshareholders' equityrather than debt. The equity multiplier is calculated by dividing a company's total asset value by the total equity held in the company's sto...