From 6f74a4c7809dafb113def11066ac0dcf091c6f0f Mon Sep 17 00:00:00 2001 From: Linas Vepstas Date: Fri, 29 Sep 2000 22:00:34 +0000 Subject: [PATCH] richards changes git-svn-id: svn+ssh://svn.gnucash.org/repo/gnucash/trunk@2981 57a11ea4-9604-0410-9ed3-97b8803252fd --- doc/sgml/C/xacc-acctypes.sgml | 69 ++++++++++++++++------------------- 1 file changed, 32 insertions(+), 37 deletions(-) diff --git a/doc/sgml/C/xacc-acctypes.sgml b/doc/sgml/C/xacc-acctypes.sgml index 560a2e878d..c2a69daead 100644 --- a/doc/sgml/C/xacc-acctypes.sgml +++ b/doc/sgml/C/xacc-acctypes.sgml @@ -6,9 +6,9 @@ Account Types - GnuCash supports a number of different account types. You should -always choose the type that is appropriate for what you want to -record. If you're not sure, the explanations below should help you + GnuCash supports a number of different account types. +Always choose the type that is appropriate for what you want to +record. If you're not sure, the following explanations should help you decide. @@ -23,38 +23,32 @@ decide. Bank -The Bank account type denotes a savings or - checking account held at a bank or other financial +The Bank account type denotes savings or + checking accounts held at a bank or other financial institution. - Such accounts sometimes bear interest. + Some of these accounts may bear interest. + This is also the appropriate account type for check (debit) cards, + which directly withdraw payments from a checking account. -Credit +Credit Card -The Credit card account is used to denote credit - card accounts, whether involving floating lines of credit as - with VISA, MasterCard, or Discover, as well as others like - American Express that do not permit you to maintain - continuing balances. -The introduction of Check - Cards where payments are withdrawn directly from a - checking account makes the selection less clear; it is - probably more appropriate to treat a "Check Card" as a Bank account, as it does withdraw amounts directly from - such an account, not really involving any granting of - credit. - Note the ambiguity of AMEX and Check Cards. This shows that - deciding where to put accounts is not an exact science. - +The Credit Cardaccount type is used + to denote credit + card accounts, both for cards that allow floating lines of + credit (e.g. VISA, MasterCard, or Discover) + and with cards that do not permit continueing balances + (e.g. American Express) Asset, Liability Asset and Liability accounts are used for - tracking things that are of value, but that are not so - directly translated into cash. + tracking things that are of value, but that are not + directly translatable into cash. For instance, you might collect the costs of purchasing a house into an asset account entitled My House, or the @@ -82,10 +76,11 @@ decide. Securities that you invest in are a form of asset that are normally acquired with the express purpose of receiving - income either in the form of dividends, interest, or Capital Gains. There are a - multitude of securities markets around the world, and - securities that are widely enough traded can have pretty - concrete values that may be analyzed on a day-to-day + income either in the form of dividends, interest, or + Capital Gains. There are + securities markets around the world, and + widely traded securities with fairly + concrete values may be analyzed on a day-to-day basis. Stock and Mutual Fund accounts are typically tracked in @@ -103,7 +98,7 @@ decide. - In order to get useful information out of the + In order to get useful information out of the register, it is necessary to have multiple "views" on the data so that you may assess such things as: @@ -123,17 +118,17 @@ decide. - Income, +Income, Expense - Income and Expense account types are used to - record income and expenses. + Income and Expense + account types are used to record income and expenses. For example, if you deposit a paycheck in your bank account, you -should mark it as a transfer from an 'income' account type. +should mark it as a transfer from an 'income' account. Marking income in this way helps balance the books: the change in your -net worth in the course of a few ekks, a few months, or a year, should -exactly equal your income (minus expenses) for the same period. -The value stored in the bank account contributes to your 'net worth'; +net worth in the course of a few weeks, a few months, or a year, should +exactly equal your income (minus expenses) for the same period. +The value stored in the bank account contributes to your 'net worth', whereas the income contributes to your 'profits'. @@ -153,10 +148,10 @@ should be marked as a transfer from an account of type 'equity'. Alternately, if you close and reopen all your books at the end of every quarter/year, the 'equity' will be your net-worth at the begining of the period: it equal all assets minus all liabilities. -As time goes by, you will have both income and expenses. +As time passes, you will have income and expenses. At the end of the year, your net worth will be the equity at the begining of the year, plus all income -minus all expense. This value will become, of course, the equity for +minus all expense. This value then becomes the equity for the next accounting period.