To provide a combined representation of the balance sheet and income statement, we can expand the accounting equation:
Answer
Assets = Liabilities + Contributed capital + Ending retained earnings
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3.2. Accounting Equations on of the income statement. To provide a combined representation of the balance sheet and income statement, we can substitute Equation 2 into Equation 1a. This becomes the expanded accounting equation:
Equation (5a)
<span>Assets = Liabilities + Contributed capital + Ending retained earnings
Or equivalently, substituting Equation 4b into Equation 5a, we can write:
Equation (5b)
Assets=Liabilities+Contributedcapital+Beginningretainedea
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