Total assets = Total liabilities + Equity. The balance sheet is one of the key elements in the financial statements, of which the other documents are the income statement and the statement of cash flows. A statement of retained earnings may sometimes be attached.
A variable interest rate is just what it sounds like: an interest rate that varies over time. Itâs the opposite of a fixed interest rate, which remains the same over time. Variable interest rates are generally used by financial institutions to move the rates on their products up and down as the market conditions change.
For example, if your credit card has a fixed APR of 18.24%, that means the APR will remain the same from month to month. A variable APR, however, is an interest rate that is normally tied to another rate, such as the prime rate or Treasury bill rate. If the other rate changes, it is likely your interest rate will change accordingly, whether it be up or down. A variable APR can change from day to day. For instance, if you have a credit card with a variable interest rate, look in your cardholder agreement to see to which interest rate your APR is tied. Your agreement may state that your APR is tied to the prime rate and is equal to prime + 5.99%.