version 1.3, 2020/10/04 13:00:24 |
version 1.4, 2020/10/04 13:50:48 |
Line 121 In the case of assets, these are values available to t |
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Line 121 In the case of assets, these are values available to t |
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or legal person doing the bookkeeping, no matter who ultimately |
or legal person doing the bookkeeping, no matter who ultimately |
owns them, like cash in the wallet or goods on the shelf, |
owns them, like cash in the wallet or goods on the shelf, |
even if some of the goods have been bought on credit. |
even if some of the goods have been bought on credit. |
Assets are classified accourding to the physical or legal form |
Assets are classified according to the physical or legal form |
they currently take. |
they currently take. |
.Pp |
.Pp |
The sums of assets always equals the sum of equity and liabilities, |
The sums of assets always equals the sum of equity and liabilities, |
but in the case of equity and liabilites, this same sum is |
but in the case of equity and liabilities, this same sum is |
subdivided according to who actually owns the values, and in which |
subdivided according to who actually owns the values, and in which |
legal form, no matter in which physical form the value is currently |
legal form, no matter in which physical form the value is currently |
available. |
available. |
Line 144 or even more specifically, changes of retained earning |
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Line 144 or even more specifically, changes of retained earning |
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Revenues represent increases of equity; |
Revenues represent increases of equity; |
expenses represent decreases of equity. |
expenses represent decreases of equity. |
.Pp |
.Pp |
For example, buying an apple and eatiing it is an expense, |
For example, buying an apple and eating it is an expense, |
reducing equity. |
reducing equity. |
On the other hand, buying twenty boxes of apples and displaying |
On the other hand, buying twenty boxes of apples and displaying |
them for sale in a shop is not an expense |
them for sale in a shop is not an expense |