Question

Describe the fundamental accounting equation. How are revenue and expenses related to it?​

Answer 1

Answer:

The fundamental accounting equation is assets= capital + liabilities. ... Revenues lead to increase in assets or capital while expenses reduce assets and may also create liability. Revenue and expenses, therefore, are the reasons for stability and soundness of the balance sheet.

Explanation:

I hope it helps

Answer 2

Answer:

guidelines are called generally accepted accounting principles or GAAP.

Revenue and expenses, are the reasons for stability

Revenue is the total amount of income generated by the sale of goods .