When you are trying to extend the over-simplified formula you need to add terms for income expense and retained income to name a few. I do not know the name of a good reference to help you.
On Sun, Aug 28, 2022 at 5:39 PM W. Neal Lewis <wnle...@southwind.net> wrote: > 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 > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > -- David Carlson _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.