The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

Examples of Accounting Problems With T-Accounts. T-accounting is a method used by accountants and bookkeepers that gets its name from the T shape formed by the two columns used to record entries.

Fixed asset accounting is no exception. Fixed assets are used frequently in financial analysis and projections since most accounting equations include assets in their calculations.