The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by ...

Though accounting for gross revenue is helpful ... Net income is the first component of a retained earnings calculation on a periodic reporting basis. Net income is often called the bottom ...

Most companies report their dividends on a cash flow statement, in a separate accounting ... is the formula for calculating dividends: Annual net income minus net change in retained earnings ...

Equity: Add up components like common stock, additional paid-in capital, retained earnings ... This is due to the accounting equation: assets are financed either through liabilities or equity ...