Basic concept question on "Basic Accounting Equation"

Jeff Kletsky gnucash at allycomm.com
Thu Feb 25 16:27:53 EST 2010


Eeep! "Another  senseless ramen-related death..."

On 2/25/2010 12:59 PM, Jeff Kletsky wrote:
> With a sign-reversed UI, my day-to-day equation is more like
>
> assets - liabilities = income - expenses = how well I'm doing
>
> Earn money? I move money into an asset (bank) from income
>
> Spend money? I move money from an asset into an expense.
>

The intent there was

assets - liabilities (or) income - expenses (is) how well I'm doing

also

* Buy on credit? I move money from a liability to an expense

* Pay my credit card? I move money from an asset to a liability

* Get charged interest? I move money from an expense into a liability

(see where the signs can get wonky? -- GNUCash can shield you from all 
that)



Never try to write emails on a cell phone with ramen splatters on your 
glasses.

$17.52 from Assets:Current:Cash to Expenses:Dining:Lunch:Jeff

back to your regularly-scheduled programming...

...from the land of expensive ramen.




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