Which one of the following represents the expanded basic accounting equation?
A)Assets = Liabilities + Common Shares + Retained Earnings + Revenues - Expenses - Dividends Declared.
B)Assets + Liabilities = Dividends Declared + Expenses + Common Shares + Revenues.
C)Assets - Liabilities - Dividends Declared = Common Shares + Revenues - Expenses.
D)Assets = Revenues + Expenses - Liabilities.

Question

Quizplus · Accepted Answer

The expanded basic accounting equation is Assets = Liabilities + Common Shares + Retained Earnings + Revenues - Expenses - Dividends Declared. This equation takes into account the components of equity (Common Shares + Retained Earnings) and the effects of business operations (Revenues - Expenses - Dividends Declared) on the equity.

Which One of the Following Represents the Expanded Basic Accounting