Question

The partial accounting equation of Assets Liabilities+? has been given below. Complete the accounting equation by dragging the items that affect equity into the expanded accounting equation in the order of Common Stock +Retained Earnings. Then, identify whether the item increases, '+, or decreases, -', equity. View drag and drop keyboard instructions Beginning Retained Accounts Accounts Receivable Revenues Expenses Cash Common Stock Payable DividendsUnearned Revenues Office Equipment Building Prepaid Insurance Supplies Land Utlites PayblSalaries Payable; Assets Liabilities Drag card her Drag card her Orag card her Drag card herc Drag card her

Answer 1

Assets = Liabilities + Common Stock + Beginning Retained Earnings + Revenues - Expenses - Dividends

Step-by-step explanation:

Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:

Total assets = Total liabilities + stockholder equity

The debit and credit side of the balance sheet should always be equal and balanced.

Moreover, it always is prepared on the specified date.

The more appropriate accounting equation is shown below:

Assets = Liabilities + Common Stock + Beginning Retained Earnings + Revenues - Expenses - Dividends

The ending balance of retained earnings = Beginning Retained Earnings + Revenues - Expenses - Dividends

All other information which is given is not relevant. Hence, ignored it