Basic concept question on "Basic Accounting Equation"

[Robert Stocks]

On 25 February 2010 16:55, Duncan Thomson <clymbon at gmail.com> wrote:
> The "GnuCash Tutorial and Concepts Guide" provides the following as the
> "Accounting Equation"
>
> *   Assets - Liabilities = Equity + (Income - Expenses)*
>
> But that seems wrong.  It is equivalent to
>
> *   Equity = Assets - Liabilities - Income + Expenses*
>
> That would imply that as my income goes up my equity goes down, and as my
> expenses go up my equity also goes up.  I wish that were true!
>
> Am I missing something?

yes the corresponding (and balancing) changes in your assets.

>
> - Clueless accounting newbie
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>



-- 
Robert