[GNC] Changing from one year to the next

[Michael or Penny Novack]

>  those were special cases of Equity, existing for the purpose of 
> Income/P&L reporting at the end of the period. 'Closing' them merely 
> facilitated resetting their balance to zero for the next period's 
> reporting.

Not EXACTLY "merely"

Back in the old days of pen and ink on paper, not only did "closing" the 
temporary income and expense accounts into equity zero out these 
accounts ahead of the next period but the process created the "Income 
Statement" (aka Profit and Loss). That's because it was a two step 
process. The income and expense accounts were not directly closed to 
equity. They were first closed to another temporary account (of 
fundamental type Equity) that had a name like "Profit and Loss", Then 
THIS account was closed to equity using whatever amount, a net gain or 
loss, that was required to bring that special "profit and Loss"  account 
to zero (thus closing IT).

That account was then the "Profit and Loss" report for the period.

Isn't it nice having a computer just fake that. When we run the "Income 
Statement" report it is showing us what we would see IF we had done this 
two step process.

Michael D Novack.