accounting case study 5 accounting equation 14x simple table 13 the totals now indicate that accounting accounting equation can be viewed here 14x simple table 17 as a result total assets did not change and liabilities and equity accounts were unaffected as shown in the following ilration accounting equation 14x table 05 2x png edelbalance1 with the expanded accounting equation you can easily see the company s net income accounting equation bookkeeping practices accounting equation 12 how to use the accounting equation elements of the fundamental accounting equation financial statements of nonprofits accounting equation 5 image titled make a balance sheet for accounting step 1 accounting equation 4 three financial statements infographic if you are not familiar with debits and credits or if you want a better understanding we will provide a few insights to help you basic accounting equation problems and solutions by the end of this topic you should be able to 1 identify the steps involved in the accounting cycle 2 explain the basic accounting equation accounting equation 1 ilration of a balance sheet understanding debits and credits in accounting lesson transcript study com balance sheet example from a model asset accounts t accounts example the purpose of an income statement is to report revenues and expenses since asi has not yet earned any revenues nor incurred any expenses accounting equation 2 let s see if i know now what i knew then 1 sketch the accounting cycle below fundamental accounting equation expanded accounting equation 2 61x table 06 accounting equation 3 61x table 10 what is the formula for the basic accounting equation basic accounting terms the income statement which reports the company s revenues expenses gains and losses during a specified period of time is a link between balance the balance sheet and the accounting equation remain in balance image titled learn accounting on your own step 6 accounting equation problems and solutions assets liabilities equity examples trial balance accounting totals income statement equation thoughtcloud png