I will agree that by mathematical logic, Assets-(Liabilities)=Equity. ∴
Assets+(Liabilites)-(Liabilities)=Equity+Liability, or stated more
simply, A=Eq+L. I have added Liability to both sides ∴ both sides remain
equal.
However, although (A+L)=Eq, (A+L)≠Eq+(I+Ex). I have added a term to the
right side that is most decidedly not on the left ∴ they cannot be equal.
∴ A and L must be terms that include other factors.
Not good at accounting, I will ask what those other factors are.
I want to use GnuCash but I am having trouble getting my mind to accept
an equation that is not correct unless terms are redefined.
Please help me with my (obviously) incorrect understandings.
Thank you,
Neal Lewis
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