Question

Which financial statement uses the expanded accounting equation?

Income Statement
Balance Sheet
Cash Flow Statement
Statement of Stock Holders Equity

Answer 1

Answer:

I guess the answer is balance sheet

Answer 2

The financial statement which uses the expanded accounting equation is the balance sheet.

Expanded accounting equation surely is a solution to many accounting problems and errors.

It should be also kept in context that just like the balance sheet, the balances after the application of expanded accounting equation have to match. If the balances dont match, it is simply the violation of the rules of accounting.