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If your divident is the result of your own investment, it is an asset. Divident payable is a liability.

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14y ago

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What is the explanation for the elements of financial statement?

asset, liability equity, investment by owners, distructions to onwners, comprehensive income, revenues, expenses, gains and lossesType your answer here...


Is rent income a asset liability or owners equity?

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Do dividends affect assets liabilities owners equity or neither?

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Is cash an asset liability or owners equity?

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Why is owners equity regarded as a liability to the business?

Owners equity is the amount invested by the owner of business to the company and as a seperate entity it is the liability of the business to return back that amount to owners as owners are seperate entity to business.


Are retained earnings considered an asset liability or owners equity?

Retained earnings are considered part of owners' equity. They represent the cumulative amount of net income that a company has retained, rather than distributed as dividends to shareholders. Retained earnings reflect the company's growth and reinvestment into the business, contributing to the overall equity value.


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Why profit is at liability side?

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What is an expanded basic accounting equation?

The expanded accounting equation replaces Owner's Equityin the basic accounting equation (Assets = Liabilities + Owner's Equity) with the following components: Owner's Capital + Revenues - Expenses - Owner's Draws. In other words, the expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner's Capital + Revenues - Expenses - Owner's Draws.In the expanded accounting equation for a corporation, Stockholders' Equity in the basic accounting equation (Assets = Liabilities + Stockholders' Equity) is replaced by these components: Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. The resulting expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock.The expanded accounting equation allows you to see separately (1) the impact on equity from net income (increased by revenues, decreased by expenses), and (2) the effect of transactions with owners (draws, dividends, sale or purchase of ownership interest).