Definition of Expanded Accounting Equation The expanded accounting equation provides more details for theowner’s equityamount shown in the basicaccounting equation.The expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner’s Capital + Revenues – Expenses – Owner’s ...
Your total equity is $10,500. Add the total equity to the $2,000 liabilities from example two. Your total assets now equal $12,500. The full accounting equation is: $12,500 Assets = $2,000 Liabilities + $10,500 Equity Expanded accounting equation The expanded accounting equation shows...
The accounting equation can be expanded to reflect additional financial elements: Assets=Liabilities+ContributedCapital+RetainedEarnings+Revenues−ExpensesAssets = Liabilities + Contributed Capital + Retained Earnings + Revenues – ExpensesAssets=Liabilities+ContributedCapital+RetainedEarnings+Revenues−Expenses ...
The basic accounting equation is a simple formula where assets are equal to liabilities plus shareholder equity, but this basic equation can be made more granular to provide greater insight into equity transactions. The type of business impacts the expanded accounting equation format, but the concept...
What is the accounting equation? A) Assets = Liabilities + Equity B) Assets + Liabilities = Equity C) Assets = Revenue - Expenses D) Liabilities = Assets + Equity 6. Wh...
结果1 题目What is the basic accounting equation? A. Assets = Liabilities + Equity B. Revenue – Expenses = Net Income C. Assets = Liabilities – Equity D. Liabilities = Assets – E. quity 相关知识点: 试题来源: 解析 A 反馈 收藏 ...
Accounting:Accounting is a professional system for organizing the operations of a business into accounts and categories. Accounting uses a double-entry system that keeps the accounting equation in balance.Answer and Explanation: The accounting equation shows total assets (a firm's valuable resources) ...
What is used in the weighted average cost of capital equation? What is managerial accounting? a. What are the three major sections of a balance sheet? b. What is the balance sheet equation? Describe what is meant by the term balance sheet equation. ...
You can also look at the financial accounting equation in another way. The equation is also written as one's assets are the equivalent of his or her net worth and liabilities. This means that everything that one has is either owned or is owed. It just another way of saying everything ...
This straightforward relationship between assets, liabilities, and equity is considered to be the foundation of thedouble-entryaccounting system. The accounting equation ensures that the balance sheet remains balanced. That is, each entry made on the debit side has a corresponding entry (or coverage)...