WebMar 17, 2024 · The Accounting Equation is a fundamental principle in accounting that represents the relationship between a company’s assets, liabilities, and Equity. The accounting equation formula is Assets = Liabilities + Equity, which means that the total assets of a company must always equal the sum of its liabilities and Equity. 2. WebOct 29, 2024 · The expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner’s Capital + Revenue – Expenses – Owner’s Draws. In a corporation, the expanded accounting equation provides additional details for the stockholder’s equity amount than what is shown in the basic accounting equation. For a corporation the ...
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