diff --git a/src/FAQ.md b/src/FAQ.md index e1969c9..3cd503e 100644 --- a/src/FAQ.md +++ b/src/FAQ.md @@ -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)