Provide an explanation for each of the following:

1. Why is an increase in an expense shown as a negative number in the expanded accounting equation? 

2. Why is cash received before services are performed not regarded as revenue?

3. Why are dividends declared not recorded as an expense

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Question 2 (6 marks) Provide an explanation for each of the following: 1. Why is an increase in an expense shown as a negative number in the expanded accounting equation? 2. Why is cash received before services are performed not regarded as revenue? 3. Why are dividends declared not recorded as an expense? Question 2 (6 marks) Provide an explanation for each of the following: 1. Why is an increase in an expense shown as a negative number in the expanded accounting equation? 2. Why is cash received before services are performed not regarded as revenue? 3. Why are dividends declared not recorded as an expense?

Answer rating: 100% (QA)

1 Increase in Expense as a Negative Number An increase in an expense is shown as a negative number in the expanded accounting equation because expense... View the full answer