Sensational Accounting Equation Expanded

The expanded accounting equation takes the basic accounting equation and splits equity into its four main elements. Learn what are Revenues and Expenses AccountsHow does the Expanded Equation of Accounting and Bookkeeping workThis is the PART II of the 3 PART series of A. Assets Liabilities Owners Equity What is the Expanded Accounting Equation.

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Definition of Expanded Accounting Equation The expanded accounting equation provides more details for the owners equity amount shown in the basic accounting equation.

Accounting equation expanded. Assets Liabilities Owners Equity Revenue Expenses Draws Revenue is what your business earns through regular operations. The standard accounting equation shows how the various types of accounts listed in a companys chart of accounts balance each other and is stated as follows. Paid-in Capital Revenues Expenses Dividends and Treasury Stock.

Assets Liabilities Owners Capital Revenues Expenses Owners Draws. The expanded accounting equation provides an enhanced level of detail regarding the shareholders equity portion of the standard accounting equation. The expanded accounting equation for a sole proprietorship is.

The expanded accounting equation is. To learn how this equation. Both the assets and liabilities section of the basic equation remains the same in the expanded equation.

Expenses are the costs to provide your products or services. However the way it is acted does not reflect the whole picture. Expanded Accounting Equation for a Corporation The stockholders equity part of the basic accounting equation can also be expanded to show the accounts that make up stockholders equity.

Assets Liabilities Capital Retained Earnings. The expanded equation is given as. When using the Expanded Accounting Equation include all elements of the owners equity or stockholders equity including gains losses and other accumulated comprehensive income if applicable.

About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy Safety How YouTube works Test new features Press Copyright Contact us Creators. The expanded Accounting Equation formula gives us the relation between the income statement and balance sheet. The Revenue earned by the company for this accounting.

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