The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals ...

Basic Elements of Accounting. The purpose of accounting is to present a precise financial picture of your business operations. By convention, financial accounting consists of five basic elements ...

Net worth equals assets minus liabilities; calculate using the basic accounting equation. Tangible assets include cash, real estate; intangibles include brand names, patents. Negative net worth ...

The basic accounting equation "assets equals liabilities plus owners' equity" is modified in the case of a nonprofit organization because owners' equity is not generally applicable.