Term
| Basic Accounting Equation |
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Definition
| Assets = Liabilities + Shareholders' Equity |
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Term
| Expanded Accounting Equation |
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Definition
| Assets = Liabilities + Contributed Capital + Revenue - Expenses - Dividends |
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Term
| Rearranged Accounting Equation (T-account) |
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Definition
| Assets + Expenses + Dividends = Liabilities + Contributed Capital + Revenue |
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Term
| Explain what happens when there are increases/decreases of assets, expenses, or dividends |
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Definition
Increases: On left (debit)
Decreases: On right (credit |
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Term
| Explain what happens when there are increases/decreases of liabilities, contributed capital, or revenue |
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Definition
Increases: On Right (credit)
Decreases: On Left (debit) |
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