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Understanding the Expanded Accounting Equation by AjCabildo is a document available to read on EtoBox.
The expanded accounting equation is represented as ASSETS = LIABILITIES + EQUITY + INCOME - EXPENSES. Income increases equity, while expenses decrease it, with the difference between them indicating profit or loss. A variation of the equation can also express it as ASSETS = LIABILITIES + EQUITY + PROFIT/-LOSS.
- Author
- AjCabildo
- Language
- EN