GNU-cash guide.pdf (page 8)

[Ron Oei]

Dear all,

thank you for all the good work!!!!

On page 8 concepts, two equations are introduced:

*I:   assets -/- liabilities = Equity *
*
*
This one looks fine, as far as my financial knowledge reaches.

*
*
*II:   assets -/- liabilities = Equity + (Income -/- Expenses)*
*
*
This equition is not valid in my humble opinion.
A: When Income rises, both assets *AND* equity rise as well with the same
amount.
B: This equition is different from the first equation (one must be true and
the other false)

Where goes my logic wrong?

(and if not: Maybe you could correct this in one of your future versions?)


-- 

Ron Oei
Community Participation Specialist and Trainer, WSP iMC
Capacity Development of Service Institutions in the former Netherland
Antilles
The Ritz Office Park, Scharlooweg 25    Curacao

Cellular: +599   9 510 5335

*"A dream you dream alone is only a dream.
**A dream you dream together is a reality."*
*Raul Seixas*