Components of the Expanded Accounting Equation A bookkeeper reviews financial information and does some calculations on a calculator.

Learn how to calculate the equation of a line from a graph, work out the gradient from an equation, and visualise intercepts with this step-by step guide.

The accounting equation defines a company’s total assets as the sum of its liabilities and shareholders’ equity. It's the foundation of the double-entry accounting system.

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.