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.

A bedrock principle of business bookkeeping is that the accounting equation must always balance: Your assets must always equal your liabilities plus your owner's equity. When your business becomes a ...

Business advertising is signified by two important accounting activities. First, revenue leaves the business when an advertising expense is incurred. Second, revenue enters the company if the ...