investment terminology and types

[Derek Atkins]

David Ayers <fogey at mindspring.com> writes:

> Hi Jon,
> 
> I am planning to switch from Quicken to GnuCash and have been following
> this thread. If I understand what you all are saying, for an investment
> account with check writing privileges I could set up the cash balance as
> a bank account and also include the same cash balance in the investment
> account so the interest will be included in investment return. Am I
> reading you correctly?

Not necessarily.  The fact that you can write checks does not
necessarily mean that it's a "Bank".  IMHO, what defines a "Bank" from
another kind of investment is really based on the commodity.  If you
have "shares" then generally it's not a Bank.  For example, my
Vanguard fund has checkwriting abilities, but it's definitely an
investment (because it's shares of some VX... fund).

> When entering the interest income from the account statement, I assume
> this can be handled with a single transaction with debits and credits to
> the proper accounts. Is this right?

Yes.

> Dave

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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