Managing U.S. Flexible Spending Accounts

[David T.]

Even as an acronym aficionado, I have to say that AEDLOEKR is not a trippingly-easy acronym!

David

--- On Mon, 1/4/10, Yawar Amin <yawar.amin at gmail.com> wrote:

> From: Yawar Amin <yawar.amin at gmail.com>
> Subject: Re: Managing U.S. Flexible Spending Accounts
> To: "Thomas Scofield" <scofield at calvin.edu>
> Cc: gnucash-user at gnucash.org
> Date: Monday, January 4, 2010, 4:24 PM
> Hi,
> 
> On 1/4/10 2:51 PM, Thomas Scofield said:
> >
> > I am a new user of GnuCash, and someone who has not
> had an accounting
> > course of any kind.  (On the other hand, I am a
> mathematician, and the
> > basics of double-entry accounting seem fairly
> intuitive if I can ever
> > get the principle behind the labels "credit" and
> "debit".)
> 
> I was fortunate enough to come across the following
> expanded accounting
> equation once in an accounting 101 textbook and from then
> on never had
> any trouble with debits and credits.
> 
> The accounting equation:
> 
> A + E + D = L + OE + K + R
> 
> Where A = Assets
>  E = Expenses
>  D = Drawings (by business owner)
>  L = Liabilities
>  OE = Owner's Equity
>  K = Contributions (by business owner)
>  R = Revenues
> 
> Everything on the left side of the equations increases when
> it's debited
> (and decreases when it's credited)
> Everything on the right side of the equations increases
> when it's
> credited (and decreases when it's debited)
> 
> I use the AEDLOEKR mnemonic to remember which is which
> (just say the
> letters several times, they roll off the tongue fairly
> easily).
> 
> HTH,
> 
> Yawar
> 
> 
> 
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