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-   -   Asset=liability owner's equity (https://www.askmehelpdesk.com/showthread.php?t=630212)

  • Jan 24, 2012, 07:01 PM
    julijewl
    Asset=liability owner's equity
    How would a transaction of paid research and development expenses for the current year effect three element of accounting equation
  • Jan 25, 2012, 07:45 AM
    pready
    you paid cash, which means an asset (Cash) decreases and the cash was paid for an expense, which means that there is an increase in expenses.

    Owners Equity = Net Income, so Revenues increase net income and expenses decrease owners equity, so your expenses for R&D will decrease Owners Equity.

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