Question

The another interpretation of the accounting equation is Assets = Liabilities + Contributed Capital + Beginning...

The another interpretation of the accounting equation is Assets = Liabilities + Contributed Capital + Beginning Retained Earnings + Net Income - Dividends + Beginning Accumulated Other Comprehensive Income + Other Comprehensive Income.

True

False

Homework Answers

Answer #1

--The statement is TRUE.

--In short, Assets = Liabilities + Equity

When expanded, Equity = Contributed capital + Retained Earnings+ Accumulated Comprehensive Income.
retained Earnings = Beginning Retained Earnings + Net Income - Dividends
Accumulated Comprehensive Income = Beginning Accumulated Other Comprehensive Income + Other Comprehensive Income.

--Hence, Assets = Liabilities + Contributed Capital + Beginning Retained Earnings + Net Income - Dividends + Beginning Accumulated Other Comprehensive Income + Other Comprehensive Income.

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