On Fri, 23 Jun 2000 17:15:15 PDT, the world broke into rejoicing as
Rob Walker <[EMAIL PROTECTED]> said:
>
> >>>>> On Fri, 23 Jun 2000 18:04:32 -0500, Richard Wackerbarth
> >>>>> <[EMAIL PROTECTED]> said:
>
> Richard> On Fri, 23 Jun 2000, Rob Walker wrote:
>
> Bill> This is basically like a Quicken category; as you get more
> Bill> paychecks, the balance of the account will increase and you can
> Bill> see the total of your salary income.
>
> >> Isn't there a "magic" account which keeps getting bigger and
> >> bigger, like "equity" or something like that?
>
> Richard> That all depends on your expenses. For some people, it gets
> Richard> smaller and smaller. :-)
>
> wow, that would suck, if GAAP said that your equity was getting lower
> and lower and worth less and less. "the numbers would say you are
> worthless now, mr. walker"
If expenses are high enough in the "Silly Valley," and you're only
making a "ludicrously high" salary as opposed to an "outrageously
ludicrously high" salary, it can indeed be the case that equity
will fall.
Don't hit me if I say something about the value of certain stock
options... The employees of the "Internet" companies that dropped
so sharply in value this year saw something like this.
More usually, people that live beyond their means also find this
result...
> Richard> Actually, income and expenses get "closed" at the end of the
> Richard> accounting period by transferring their balance to the equity
> Richard> accounts. Some programs continuously do this "virtually" as
> Richard> of the present time.
>
> oh, greeaaaatttt....
>
> i can't make up my mind, do I have one accounting period which ends
> when I die, or do I have one per calendar year (thakn you mr. Federal
> Treasury and their Revenue arm)?
Then flip a coin. There is _not_ a fixed mandate to always close out
accounts into equity; that's something you can choose to either do, or
not do.
A report of activity for 2001 probably ought to treat incomes and
expenses from 2000 and earlier as being "closed," and move any such
balances to equity; whether the transactions that _formalize_ this
actually get posted to the accounts is _your_ call, and really _isn't_
a matter of GAAP or tax regulations.
--
[EMAIL PROTECTED] - <http://www.hex.net/~cbbrowne/>
"I don't plan to maintain it, just to install it." -- Richard M. Stallman
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