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faq: edits

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Simon Michael
2024-04-11 11:37:54 -10:00
parent 3c673932e7
commit 74de87ad04

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@@ -71,16 +71,16 @@ Businesses usually merge Revenues and Expenses into their Equity balance at the
### What is the accounting equation ?
It is a simple formula that always holds true when bookkeeping is correct.
A simple formula that always holds true when bookkeeping is correct.
You'll see it written in different ways, eg:
Equity = Assets - Liabilities
- Equity = Assets - Liabilities
Assets + Liabilities + Equity = 0 (using PTA's sign convention)
- Assets + Liabilities + Equity = 0 (using PTA's sign convention)
Equity = Assets - Liabilities
- Equity = Assets - Liabilities
Assets = Liabilities + Equity + Revenue Expenses
- 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).