Which One of the Following Represents the Expanded Basic Accounting

question 36

Multiple Choice

Which one of the following represents the expanded basic accounting equation?

• A)Assets = Liabilities + Common Shares + Retained Earnings + Revenues - Expenses - Dividends.
• B)Assets + Liabilities = Dividends + Expenses + Common Shares + Revenues.
• C)Assets - Liabilities - Dividends = Common Shares + Revenues - Expenses.
• D)Assets = Revenues + Expenses - Liabilities.

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Definitions:

Net Income

The final amount of money a company earns, after deducting all its costs including taxes and operational expenses, from its total income.

Accrued Revenue

Revenue earned in one accounting period but not received until a later period, representing money owed to a business for goods or services provided.

Adjusting Journal Entries

Accounting entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Net Income

The total profit of a company after all revenues and gains are added and all expenses and losses are subtracted.