Financial Rporting

chandniwadhwani92
Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

Financial Rporting

Postby chandniwadhwani92 » Mon Dec 15, 2014 5:40 pm

Expenses are calculate to generate revenue.Expenses decrease economic benefit due to outflow during accounting period or depletion of asset or occurrence of liabilities that results in decrease in equity other than those relating to distribution to equity participants
MY QUESTION
how expense decrease equity without relating to distribution to equity participants?/////

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Financial Rporting

Postby edupristine » Tue Dec 16, 2014 6:44 am

Very simple expenses decrease net income that will decrease shareholder equity.


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