Mastery Problem: Introduction to Accounting and Business The Accounting Equation The foundation for the accounting system and the financial statements is the accounting equation. Select the terms that complete the accounting equation. Accounting Equation For each of the following items, indicate the element of the accounting equation to which it belongs: Assets. Liabilities or Stockholders' Equity. Assets Liabilities Stockholders' Equity Accounts Payable C O Accounts Receivable O O Auto Expense O O Common Stock O O O Cash O Dividends O O Fees Earned O O Land O O Miscellaneous Expense O O O Supplies O O O Supplies Expense O O O Wages Expense O O O