Basic Accounting Concepts - what am I missing?
warlord at MIT.EDU
Mon Jan 3 12:13:18 EST 2011
Jim Smith <jimsmth761 at gmail.com> writes:
> I think we all agree that this equation is the starting point (i.e., it is
Nope, that is not correct. You have the sign backwards.
Equity = Assets - Liabilities + Income - Expenses.
Increasing Income increases Equity. As does increasing Assets. So in
your equation it should be:
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Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
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