Ask Experts Questions for FREE Help !
Ask
    julijewl's Avatar
    julijewl Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 24, 2012, 07:01 PM
    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
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Jan 25, 2012, 07:45 AM
    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Cash is a financial asset, what is its respective financial liability/ equity? [ 2 Answers ]

According to IFRS "Financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity interest of another entity" E.g. For notes receivable as a financial asset, we have respective notes payable from another company as a financial...

What is an Asset, Liability, and Owners' Equity [ 3 Answers ]

Can you tell me if the following are asset, liability, owners' equity, revenue, expense, gain, loss and if they are on a balance sheet or income statement Accumulated depreciation Long term debt Equipment Loss on sale of short term investments Net income Merchandise inventory Other accrued...

What is the difference between owner's capital account and owner's equity? [ 1 Answers ]

I saw this sentence in a book of accounting which put me in doubt that there is some difference between the two, the sentence is "The balance of the Owner's capital account in the ledger will now be the same as the amount of Owner's equity appearing in the balance sheet."

Asset, liability, equity [ 1 Answers ]

How do you find: Equity Dec 2009 ,when this is what you are given: December 31, 2008 Assets 46,000 Liabilities 37,720 December 31, 2009 Assets 49,000 Liabilities ?

Owner's equity, owner's claims and balance sheet [ 2 Answers ]

I need help with the following questions. 1. On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash, $20,500; Accounts Receivable, $7, 250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July...

View more questions Search