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.

As a small business owner, understanding key accounting terms is vital for managing your finances effectively and making informed decisions. Whether you handle your own bookkeeping or work with an ...

She has 15+ years of experience as a financial writer and technical analyst. Cost accounting manages and tracks all of a company's expenses to enable it to get a better handle on its financial health.

Expenses are generally recorded on an accrual basis, ensuring that they match up with the revenues reported in accounting periods. Expenses are used to calculate net income. The equation to ...