From 74de87ad040fb319647ff2f719fc6610a22c1626 Mon Sep 17 00:00:00 2001 From: Simon Michael Date: Thu, 11 Apr 2024 11:37:54 -1000 Subject: [PATCH] faq: edits --- src/FAQ.md | 10 +++++----- 1 file changed, 5 insertions(+), 5 deletions(-) diff --git a/src/FAQ.md b/src/FAQ.md index 3cd503e..87f1d4e 100644 --- a/src/FAQ.md +++ b/src/FAQ.md @@ -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).