Basic Accounting Equation

Question 1

A = L + SE

Answer 1

Assets are + by Dr

L’s are + by Cr

SE are +Cr by Common stock, Ret. Earnings, Revenues, and -Dr by Divs, Expenses

Question 2

Expanded: A = L + [Common stock + RE - Dividends + Revs - Exps]

Answer 2

Common stock reduces A but +Cr SE
RE reduces A (-Dr), but +Cr SE

Div’s +Dr A but are subtracted from SE as -CR

Revenues -A, -Dr, but +Se, +CR

Expenses +Dr to A, -Cr to SE and are subtracted from SE