Empirical Rule | Empirical Rule Definition The empirical rule, also referred to as the three-sigma rule or 68-95-99.7 rule, is a statistical rule which states that for a normal distribution, almost all data falls within three standard deviations (denoted by σ) of the mean (denoted by µ). Broken down, the empirical rule shows that 68% falls within […]
Depreciation Expense It is important to analyze how company’s use depreciation, which can represent a significant portion of the expenses on a firm’s income statement, and which can impact the value of an investment opportunity in the short term. While there are rules governing how to expense depreciation, there is still plenty of wiggle room for management to […]
How to Calculate Bad Debt Expense? Bad debt expense is related to a company’s current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense. Bad debts expense results because a company delivered goods or services on credit and the customer did not pay the amount owed. If we imagine buying something, […]
Personal Financial Statement Template This personal financial statement template is a great tool to keep track your personal assets, liabilities, income and expenses. A personal financial statement is a document or set of documents that outline an individual’s financial position at a given point in time. It is usually composed of two sections: a balance […]
,How To Calculate Marginal Revenue? Marginal Revenue is easy to calculate. All you need to remember is that marginal revenue is the revenue obtained from the additional unit sold. The formula above breaks into two parts: one, change in revenue that means (total revenue – old revenue) and two, change in quantity, which means (total […]