Why does equity go up when expenses are added?

Andrew Anderson ada601 at hotmail.com
Sat Jun 18 05:35:03 EDT 2005


This may seem superbly silly to most users out there familiar with 
accounting, but I cannot understand it at all. Why does my equity go up when 
I add any type of expense - such as electricity, phone book, etc? My assets 
go down - as they should, since I'm pulling the money from my CASH account, 
but the equity goes up!?... why?

If someone could fill me in on this I would be ever so appreciative.



Thank You,

Andrew D. Anderson




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