0
Still curious? Ask our experts.
Chat with our AI personalities
Judy
Jordan
FranAdd your answer:
Earn +20 pts
What is the basic summary device of accounting?
account or accounting equation
What is the basic accounting equation?
== == Assets = Liabilities + Owners Equity
What is the effect of performing services on account on the basic accounting equation?
-liabilites, +stockholder's equity
How are property and property right reflected in the basic accounting equation?
i dont knowType your answer here...
What is an expanded basic accounting equation?
The expanded accounting equation replaces Owner's Equityin the basic accounting equation (Assets = Liabilities + Owner's Equity) with the following components: Owner's Capital + Revenues - Expenses - Owner's Draws. In other words, the expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner's Capital + Revenues - Expenses - Owner's Draws.In the expanded accounting equation for a corporation, Stockholders' Equity in the basic accounting equation (Assets = Liabilities + Stockholders' Equity) is replaced by these components: Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. The resulting expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock.The expanded accounting equation allows you to see separately (1) the impact on equity from net income (increased by revenues, decreased by expenses), and (2) the effect of transactions with owners (draws, dividends, sale or purchase of ownership interest).
