Match each of the following items with expanding accounting equation. Use the most detailed category appropriate. 1. Utilities Expense
2. Accounts Receivable
3. Common Stock
4. Office Supplies
5. Lease Expense, Computer
6. Salaries Expense
7. Cash
8. Rent Expense, Office
9. Service Revenue
10. Accounts Payable
11. Land

a. Assets
b. Liabilities
c. Stockholders' Equity
d. Revenues
e. Expenses

Matching items with expanding accounting equation:

Items                                         Expanding Accounting Equation

1. Utilities Expense                    c. Stockholders' Equity

2. Accounts Receivable            a. Assets

3. Common Stock                     c. Stockholders' Equity

4. Office Supplies                      a. Assets

5. Lease Expense, Computer   c. Stockholders' Equity

6. Salaries Expense                   c. Stockholders' Equity

7. Cash                                       a.  Assets

8. Rent Expense, Office            c. Stockholders' Equity

9. Service Revenue                   c. Stockholders' Equity

10. Accounts Payable                b. Liabilities

11. Land                                     a.  Assets

Explanation:

The accounting equation says that Assets = Liabilities + Equity.  Expenses and Revenues reduce and increase Equity respectively with Retained Earnings.   So, they form part of Equity.

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