The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

When companies purchase supplies on account, they have to create several journal entries to record the transaction in their financial statements. These entries change the balance of the fundamental ...

Companies finance their operations with a combination of debt and equity. The terms and amounts of these loans and capital contributions affect the health and financial condition of the business. From ...