diff --git a/doc/html/C/xacc-acctypes.html b/doc/html/C/xacc-acctypes.html index eb0473b746..a1ba562593 100644 --- a/doc/html/C/xacc-acctypes.html +++ b/doc/html/C/xacc-acctypes.html @@ -11,6 +11,9 @@

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 decide.
Cash
@@ -23,9 +26,8 @@
The Bank account type denotes a savings or checking account held at a bank or other financial - institution.
- -
Such accounts sometimes bear interest.
+ institution. + Such accounts sometimes bear interest.
Credit
@@ -35,6 +37,7 @@ American Express that do not permit you to maintain continuing balances. +

The introduction of Check Cards where payments are withdrawn directly from a @@ -116,19 +119,36 @@
Income, Expense
-
Income and Expense accounts are used to - collect incomes 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. +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'; +whereas the income contributes to your 'profits'. + +
Equity
-
Equity accounts are used to balance the balance - sheet, indicating the portion of the "corporate" value - represents the net amount that the owners own.
+
Equity accounts are used to +store the opening balances when you first start using GnuCash +(or start a new accounting period). Assuming that you've had a bank +account far longer than you've been using GnuCash, and assuming you +don't want to type in old transactions, you will want to type in a +non-zero 'opening balance' into your bank account. This opening balance +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 passes by, +you will have both 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 +the next accounting period. -
On a year-by-year basis, a computed value called - Retained Earnings indicates the net value of the - enterprise; it is generally considered a good thing when this - value increases.
+
Currency