How are revenue and expense related to accounting eqiation?

1.	How are revenue and expense related to accounting eqiation?
Answer» The fundamental accounting equation is assets= capital + liabilities.As every accounting equation has two effects( debit and credit). Revenues\xa0lead to increase in assets or capital while expenses reduce assets and may also create liability. Revenue and expenses, therefore, are the reasons for stability and soundness of the balance sheet.

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