Basic & Expanded Accounting Equation

Question 1

Basic Equation

Answer 1

Assets = Liabilities + Owners Equity

Question 2

Expanded Equation

Answer 2

Assets = Liabilities + Owner’s Capital - Owner’s Drawings + Revenues - Expenses

Question 3

Assets Examples

Answer 3

Cash
Accounts Receivable
Supplies
Equipment
Land
Buildings

Question 4

Liabilities Examples

Answer 4

Accounts Payable
Notes Payable

Question 5

Owner’s Capital Examples

Answer 5

Owner’s Capital

Question 6

Owner’s Drawing Examples

Answer 6

Owner’s Drawings

Question 7

Revenues Examples

Answer 7

Service Revenue
Sales Revenue
Unearned Revenue

Question 8

Expenses Examples

Answer 8

Advertising Expense
Salaries and Wages Expense
Rent Expense
Utilities Expense
Prepaid Expense