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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