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faq: updates

This commit is contained in:
Simon Michael
2024-04-11 11:19:32 -10:00
parent d2880e9bde
commit 3c673932e7

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@@ -82,6 +82,22 @@ Equity = Assets - Liabilities
Assets = Liabilities + Equity + Revenue Expenses
You can check the accounting equation for your accounts by inspecting an ALE balance report
like [`hledger bse`](https://hledger.org/dev/hledger.html#balancesheetequity).
(In personal accounting, an imbalance in the accounting equation isn't necessarily a problem, and most people don't bother checking it.)
### What are balanced transactions ?
A transaction where the sum of inflows is equal to the sum of outflows
(or with the signed number convention described below: where all of the posted amounts sum to zero),
confirming that no money appeared or disappeared.
PTA apps and other double-entry bookkeeping software enforce balanced transactions to help prevent errors
(sometimes with [exceptions](https://hledger.org/dev/hledger.html#virtual-postings) for special circumstances).
Note, balanced transactions does not imply a balanced accounting equation.
Both of these can help detect errors, but balanced transactions is a higher priority.
- [Wikipedia](https://en.wikipedia.org/wiki/Accounting_equation)
- [Investopedia](https://www.investopedia.com/terms/a/accounting-equation.asp)