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.

There are two basic methods of accounting that businesses use to track and report revenues: the cash basis and the accrual basis. Under the accrual basis, revenues are recorded on a company's income ...

Calculate revenue growth by comparing yearly or quarterly revenue, showing business success. Accrual accounting rules may delay cash flow despite showing revenue increases, affecting actual income.