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.
Interest. Interest is the cost of borrowing money. An interest rate is the cost stated as a percent of the amount borrowed per period of time, usually one year. The prevailing market rate is composed of: 1  The Real Rate of Interest that compensates lenders for postponing their own spending during the term of the loan.