Basic Accounting Concepts - what am I missing?

[James Kerr]

On Sun, 2011-01-02 at 07:01 +0000, James Kerr wrote: 
> On Sat, 2011-01-01 at 23:50 -0500, Jim Smith wrote: 
> > When one writes the Accounting Equation in the form shown below, it
> > doesn't make any sense to me.
> > (Assets - Liabilities) + (Expenses - Income) = Equity
> > 
> 
> You have the equation wrong. The basic accounting equation can be
> written as:
> 
> (Assets-Liabilities)+(Income-Expenses)=Equity
> 
> or in plain language:
> 
> Equity is equal to the sum of net assets and net income.
> 

Apologies, but I had a "brain  fart" when I wrote that. (I blame old
age.) The basic Accounting Equation is, of course:

(Assets-Liabilities)=Equity+(Income-Expenses)

or in plain language:

the total of Equity and net income is equal to net assets.

Jim