Difference in Equity and Assets (checking a/c)

[Mike or Penny Novack]

On 9/14/2015 4:41 PM, Larry Evans wrote:
> On 09/14/2015 04:41 AM, Michael Hendry wrote:
Maybe this will work as a shortcut to understanding. At least it should 
show you that you DO have access to "net worth" at and time.

Run the report known as the "Balance Sheet".

This report will show all the "real" (standing) accounts of type assets, 
liabilities, and equity, and shows the fundamental "equation" of assets 
= liabilities + equity. But take a close look at what it has under equity.

See that it has added an "account" that you didn't define in your books, 
something titled "net gain or loss" (the mount there will be a credit of 
a gain or a debit if a loss). That amount is the NET of all of your 
(temporary) income and expense accounts. The total shown for equity 
won't be just your "starting equity" amount but that "plus" this amount 
representing all the currently open income and expense accounts.

It is your TOTAL equity that is your "net worth", not just your starting 
equity. Dos this help?

Michael D Novack, FLMI