Basic Accounting Concepts - what am I missing?

[James Kerr]

On Sat, 2011-01-01 at 23:50 -0500, Jim Smith wrote: 
> When one writes the Accounting Equation in the form shown below, it
> doesn't make any sense to me.
> (Assets - Liabilities) + (Expenses - Income) = Equity
> 

You have the equation wrong. The basic accounting equation can be
written as:

(Assets-Liabilities)+(Income-Expenses)=Equity

or in plain language:

Equity is equal to the sum of net assets and net income.

Jim