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.

The accounting equation, which underlies double-entry accounting, is as follows: The balance sheet follows this format and shows information at a detailed account level. For example, the balance ...

The following formula and calculation can be used to determine the equity of a firm, which is derived from the accounting equation: This information can be found on the balance sheet, where these ...