Fill This Form To Receive Instant Help
Homework answers / question archive / How do I calculate expenses from an extended accounting equation?
How do I calculate expenses from an extended accounting equation?
The Accounting Equation is as follows:
Assets = Liabilities + Equity
The extended accounting equation (which breaks up the current equity component) is:
Assets = Liabilities + Beginning Equity + Revenue - Expenses - Dividends
Therefore, to solve for expenses, the equation is:
Expenses = Liabilities + Beginning Equity + Revenue - Dividends - Assets