Provide an example of how revenue affects the expanded accounting equation.

Jan 12, 2024 ... The accounting equation, Assets = Liabilities + Equity, is often simplified when first taught, and rarely revisited. As such it's easy to gloss ... The accounting equation is a fundamental concept in accounting that states that all assets of a business are equal to the sum of its liabilities and equity. Jun 9, 2021 ... These are the ten most important equations that you, as a business owner, should be familiar with to stay on top of your business' accounting. This video explains the relationship between the resources of a business (assets) and how these resources are funded (equity and/or liabilities) – with ... Apr 21, 2025 ... Accounting Equation Formula · Assets = Liabilities + Equity (Shareholder's Fund) · Liabilities = Assets – Equity (Shareholder's Fund) · Equity ( ... Step 4. The “Subtotal” can be calculated by adding the last two numbers on the statement: $94,000 + $40,000 = $134,000. After this calculation we have:. Sep 9, 2019 ... A basic accounting equation is used for financial statement no matter if you are just a small business or a multimillion company. You can use Wafeq for free now and start recording all your transactions and our innovative solution will do all the accounting equations in the background for ... It offers a quick, no-frills answer to keeping your assets versus liabilities in balance. Here's the formula: Assets = Liabilities + Equity. A beginner friendly explanation of the Accounting Equation. This formula sets out the relationship between Assets, Liabilities and Equity.