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.

This the capital outlay for the specific accounting period indicated on your balance sheet. You can use previous balance sheets to learn about the depreciation of your assets.

In accounting terms, additional paid-in capital is the value of a company's shares above the value at which they were issued. This can apply to both common and preferred shares.