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

Question

Quizplus · Accepted Answer

The expanded basic accounting equation includes all components of the financial statements. It shows that assets are equal to the sum of liabilities, common shares, retained earnings, revenues, and expenses, less dividends. This equation reflects the fundamental accounting identity that underlies all financial reports.

Which One of the Following Represents the Expanded Basic Accounting