Second, revenue enters the company if the advertising was successful. Both activities affect the accounting equation and require proper categorization to keep business finances balanced.

How Collections of Cash Affect Accounting Equations. The accounting equation illustrates the relationship between a company's assets and the claims that creditors and investors have on those ...

The expanded accounting equation is a form of the basic accounting equation that includes the distinct components of owner's equity, such as dividends, shareholder capital, revenue, and expenses.

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 ...