The accounting equation is a core concept of modern accounting that states that a company's assets are the sum of its liabilities and its shareholder equity. The accounting equation is a ...

It can inform strategic business decisions and even prevent fraud. To balance your books, the accounting equation says assets should always equal liabilities plus equity. But if you need a ...

Payroll affects every aspect of the accounting equation. In the most straightforward sense, money spent on payroll is money that offsets revenue and leads to lower net profit, fewer assets and ...

Other principles require that transactions be recorded using a basic double-entry accounting equation, which reflects the principle of duality, and that an extended or expanded accounting equation ...

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 expanded accounting equation is derived from the common accounting equation and illustrates in greater detail the different components of stockholders' equity in a company. By decomposing ...

This equation takes a little more work to calculate, but it’s one of the most important accounting formulas you can use in your business. You calculate your break-even point as follows ...