Patch for guide file "ch_basics.xml"
tbullock at nd.edu
Sat Oct 16 14:10:50 EDT 2010
Geert and Juergen,
Earlier exchanges stated:
> > "Assets" is the sum of all accounts of types Bank, Cash, Asset, Stock, Mutual
> > Fund, Credit Card, Liability, A/Payable and A/Receivable, obviously taking the
> > proper sign into account. Calling this "Assets" would indeed be confusing at
> > least.
Just netting (offsetting credits [liabilities] against debits [assets]
from the balance sheet) these together gives "Net Assets", not net
worth. Net worth is a duration concept, meaning activity over time. It
refers to the use of assets to generate income while incurring expenses
to do that. Net Assets is a point-in-time concept and excludes any
income statement activity.
Given what has been said to this point, the most accurate term I have
seen is "net assets" for the place where a better name is needed.
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