Financial Calculations

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An economic continuum is a method of categorizing parts of the economy, starting with those parts closest to the natural environment and flowing to those parts furthest away from it, according to About.com Geography. More developed countries have longer continua.

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  • What is the currency of Brazil called?

    Q: What is the currency of Brazil called?

    A: The currency of Brazil is called the Real, according to the XE website. The Real's currency code is BRL and its symbol is R$. The minor unit of the Real is the Centavo, which amounts to 1/100 R$.
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  • What are capital gains?

    Q: What are capital gains?

    A: Capital gains are the profits an investor makes on certain types of investments. Real estate, precious metals, collectibles, bonds, mutual funds, stocks and options are investments for which a person can earn capital gains, according to About.com.
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  • What is the formula for total revenue?

    Q: What is the formula for total revenue?

    A: According to AmosWeb, total revenue is calculated by multiplying the price received from the product times the quantity of the product sold at that price. Total revenue is usually depicted as a total revenue curve with it being directly related to marginal revenue and average revenue.
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  • What is an economic continuum?

    Q: What is an economic continuum?

    A: An economic continuum is a method of categorizing parts of the economy, starting with those parts closest to the natural environment and flowing to those parts furthest away from it, according to About.com Geography. More developed countries have longer continua.
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  • What is the importance of international finance?

    Q: What is the importance of international finance?

    A: International finance is important for determining exchange rates, comparing inflation rates, investing in foreign debt securities, ascertaining economic conditions in other countries and investing in foreign markets, according to For Dummies. The International Financial Reporting Standards (IFRS), adopted by more than 120 countries as of April 2011, are an important backbone of international finance and offer numerous benefits, according to Investopedia.
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  • What is a profit sharing plan?

    Q: What is a profit sharing plan?

    A: A profit sharing plan gives employees a percentage of the profits the company earns each year. These funds are put into an investment account for the employees.
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  • What are financial resources?

    Q: What are financial resources?

    A: Business Dictionary lists financial resources as funds that are available to a business for spending. These funds may come in the form of money, liquid securities or credit lines.
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  • What are the remedies to measure and control inflation?

    Q: What are the remedies to measure and control inflation?

    A: The rate of inflation is a measure of the Consumer Price Index, according to Saint Joseph’s College. Inflation control is a part of the monetary policy set by the Federal Reserve that involves the fluctuation of interest rates and the selling of bonds through the U.S. Treasury.
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  • How do I calculate how much I make an hour?

    Q: How do I calculate how much I make an hour?

    A: The hourly rate of pay is calculated by dividing the gross salary for a specific period by the number of hours worked in that same period. Gross salary is the amount earned prior to any deductions.
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  • What is a marginal revenue function?

    Q: What is a marginal revenue function?

    A: The marginal revenue function in economics refers to the increase in revenue resulting from the sale of one additional unit of output. Marginal revenue is calculated by dividing the change in revenue by the change in output. While the marginal revenue function can remain constant over a specific level of output, it follows the law of diminishing returns. As a result, marginal revenue tapers off as output increases.
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  • What is a petty cash transaction?

    Q: What is a petty cash transaction?

    A: Petty cash transactions are small business expenses that are paid out in cash, according to About.com. Frequently a company has a small amount of cash on hand that is used to pay for small purchases or reimburse employees for company purchases made out of pocket. Petty cash expenditures are recorded in the company's financial records to keep track of how the money is utilized.
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  • What is the formula for total fixed cost?

    Q: What is the formula for total fixed cost?

    A: The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Portal. Fixed costs are costs that do not change based on aspects such as production levels, where variable costs change based on production.
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  • What does "net price" mean?

    Q: What does "net price" mean?

    A: The term "net price" refers to the cost of something minus the price of anything that lowers the total dollar value a consumer actually pays, according to U.S. News & World Report. The term is most commonly used by colleges and universities.
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  • How do you calculate interest expense?

    Q: How do you calculate interest expense?

    A: Interest expense is calculated as the interest rate multiplied by the amount of the outstanding principal of the debt. Defined by Investopedia, interest expense is the cost incurred by an entity on borrowed funds.
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  • What is the definition of "compound interest"?

    Q: What is the definition of "compound interest"?

    A: Compound interest is a financial term used to describe the process where the interest earned on a principal investment over a set period of time is added to the principal amount. The interest payable for the following periods is recalculated on the sum of the original investment and the previous interest earned. The word "compound" refers to the magnified effect that this method has on an investment's growth potential.
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  • How is a sales commission calculated?

    Q: How is a sales commission calculated?

    A: A sales commission is calculated using the commission structure agreed upon between the owner or manager of a business and a salesperson. This commission structure is sometimes received as a one-time payment. However, it can also be received as a recurring commission over the life of the sales account.
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  • How do you calculate a percentage of a dollar?

    Q: How do you calculate a percentage of a dollar?

    A: To calculate a percentage of $1.00, treat it as 100 pennies. The percentage sought is equal to the same number in cents. According to Math Is Fun, "percent" is a number per 100, so treating $1.00 as a 100 pennies makes the math simple.
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  • What does "net cost" mean?

    Q: What does "net cost" mean?

    A: The net cost of a good or service is the total cost of the product minus any benefits gained by purchasing that product, according to AccountingTools. It differs from the gross cost, which is just the total cost of a product.
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  • What is the importance of financial accounting?

    Q: What is the importance of financial accounting?

    A: Financial accounting is important because it provides an organization's stakeholders with business statements, allowing them to know if the organization is making or losing money. This information is essential in determining if a company is able to maintain profitability, according to Accounting-Careers-Guide.com.
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  • What is profit maximization?

    Q: What is profit maximization?

    A: In economics, profit maximization refers to the process by which a business assesses the price and output of goods in order to ensure the greatest profit. During the assessment, businesses will determine the expense of fixed and variable costs during production in order to ascertain financial viability. There are two main ways a business achieves this total revenue-total cost and marginal revenue-marginal cost.
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  • How much does it cost to buy a star?

    Q: How much does it cost to buy a star?

    A: The cost to buy a star ranges from $19.95 to $50 and higher, depending on the specific package chosen. Certain star packages include medallions while others include a commemorative plaque. It is also possible to name the star specifically for a particular person.
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