Expanded Accounting Equation for a Corporation
The stockholders' equity part of the basic accounting equation can also be expanded to show the accounts that make up stockholders' equity: Paid-in Capital, Revenues, Expenses, Dividends, and Treasury Stock.
Instead of the accounting equation, Assets = Liabilities + Stockholders' Equity, the expanded accounting equation is:
Expanded Accounting Equation for a CorporationThe stockholders' equity part of the basic accounting equation can also be expanded to show the accounts that make up stockholders' equity: Paid-in Capital, Revenues, Expenses, Dividends, and Treasury Stock.Instead of the accounting equation, Assets = Liabilities + Stockholders' Equity, the expanded accounting equation is:
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