version 1.2, 2020/09/27 15:38:25 |
version 1.4, 2020/10/04 13:50:48 |
Line 112 for statistical accounts |
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Line 112 for statistical accounts |
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It is recommended but not required that all account numbers |
It is recommended but not required that all account numbers |
in a given bookkeeping file have the same length. |
in a given bookkeeping file have the same length. |
.Ss Account types |
.Ss Account types |
To correctly assign account types, it is crucial to remeber the |
To correctly assign account types, it is crucial to remember the |
following distinctions. |
following distinctions. |
.Pp |
.Pp |
Balances on asset, liability, and equity accounts |
Balances on asset, liability, and equity accounts |
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 142 revenues and expenses do not represent values at rest |
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Line 142 revenues and expenses do not represent values at rest |
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but changes of values, or more specifically, changes of equity, |
but changes of values, or more specifically, changes of equity, |
or even more specifically, changes of retained earnings. |
or even more specifically, changes of retained earnings. |
Revenues represent increases of equity; |
Revenues represent increases of equity; |
expenses reqresent 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 |