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fix up definitions of the equity and the income/expense account types

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git-svn-id: svn+ssh://svn.gnucash.org/repo/gnucash/trunk@2224 57a11ea4-9604-0410-9ed3-97b8803252fd
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Linas Vepstas
2000-04-27 06:41:27 +00:00
parent fa17da61cc
commit ad4448f109
1 changed files with 32 additions and 12 deletions
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doc/html/C/xacc-acctypes.html
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@@ -11,6 +11,9 @@
<body> <body>
<h1>Account Types</h1> <h1>Account Types</h1>
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.
<dl> <dl>
<dt><b>Cash</b></dt> <dt><b>Cash</b></dt>
@@ -23,9 +26,8 @@
<dd>The <b>Bank</b> account type denotes a savings or <dd>The <b>Bank</b> account type denotes a savings or
checking account held at a bank or other financial checking account held at a bank or other financial
institution.</dd> institution.
Such accounts sometimes bear interest.
<dd>Such accounts sometimes bear interest.</dd>
<dt><b>Credit</b></dt> <dt><b>Credit</b></dt>
@@ -35,6 +37,7 @@
American Express that do <em> not</em> permit you to maintain American Express that do <em> not</em> permit you to maintain
continuing balances.</dd> continuing balances.</dd>
<p>
<dd>The introduction of <a href= <dd>The introduction of <a href=
"http://www.visa.com/pd/debit/checkcard.html"> Check "http://www.visa.com/pd/debit/checkcard.html"> Check
Cards</a> where payments are withdrawn directly from a Cards</a> where payments are withdrawn directly from a
@@ -116,19 +119,36 @@
<dt><b><a href="xacc-expense.html"> Income, <dt><b><a href="xacc-expense.html"> Income,
Expense</a></b></dt> Expense</a></b></dt>
<dd><b> Income</b> and <b>Expense</b> accounts are used to <dd><b> Income</b> and <b>Expense</b> account types are used to
collect incomes and expenses.</dd> 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'.
</dd>
<dt><b>Equity</b></dt> <dt><b>Equity</b></dt>
<dd><b>Equity</b> accounts are used to balance the balance <dd><b>Equity</b> accounts are used to
sheet, indicating the portion of the "corporate" value store the opening balances when you first start using GnuCash
represents <em> the net amount that the owners own.</em></dd> (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.
<dd>On a year-by-year basis, a computed value called <b> </dd>
Retained Earnings</b> indicates the net value of the
enterprise; it is generally considered a good thing when this
value increases.</dd>
<dt><a href="xacc-currency.html"> <b>Currency</b></a></dt> <dt><a href="xacc-currency.html"> <b>Currency</b></a></dt>