Asked by Aaron Silver on May 02, 2024
Verified
Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)
Expanded Accounting Equation
Assets = Liabilities + Capital – Withdrawals + Revenue – Expenses.
Owner's Equity
The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of the owners.
- Grasp the concept of the expanded accounting equation and its impact on Owner's Equity.
Verified Answer
AP
anupama patnaikMay 07, 2024
Final Answer :
Revenue is an increase to owner's equity; Capital is increased on the credit side.
Learning Objectives
- Grasp the concept of the expanded accounting equation and its impact on Owner's Equity.