[GNC] Question about the accounting equation in the GnuCash guide

[David Cousens]

It certainly will. 

Your net worth is your Equity = Assets - Liabilities.

The purpose of the arrangement of the accounting Equation in its usual
form  Assets=Liabilities + Equity though is to define which accounts
have debit balances (Assets) and which have credit balances (Liabities
and Equity). In that form, it has nothing to do with the calculation of
net worth.

On Sat, 2025-08-16 at 14:52 +0000, David G. Pickett via gnucash-user
wrote:
> I look on it as:
>     Net Worth = Equity + Assets - Liabilities
> where Equity is softer assets like the value of a business if sold,
> but Assets are solidly accounted balances owed to you.  Of course, a
> negative Liability is as good as a positive Asset, but accounts are
> stuck with their category as Asset or Liability with an assumed sign
> against Net Worth.
> 
> I am sure this will upset the properly trained accountants!
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