Mortgages?

[linas@linas.org]

It's been rumoured that Bill Gribble said:
> 
> On Mon, Feb 05, 2001 at 02:59:27PM -0600, linas@linas.org wrote:
> > someone needs to write a 'cash flow' report, which is missing in the
> > current version.
> 
> Actually isn't it the other way around?  I would have thought only
> income and expense accounts would be part of cash flow. 

No; Carol nailed the answer: 
income & expense summarize includes changes to all assets (e.g. mortgage 
principle) and you want to exclude non-cash assets from the cash-flow 
report.  So buying 1000 widgets is a net cash-flow out, even though 
your net worth didn't change before & after.

cash-flow = income - expense - non-cash assets + non-cash debts

or something like that.

--linas