On Tue, Oct 1, 2024 at 12:12 PM Stephen M. Butler <kg...@arrl.net> wrote:
> On 10/1/24 10:04, R Losey wrote: > > On Tue, Oct 1, 2024 at 11:44 AM Chris Miller via gnucash-user < > > gnucash-user@gnucash.org> wrote: > > > >> Hi Folks, > >> > >> These are GnuCash questions; not accounting questions: > >> > >> > >> * How do "Cash", "Bank" and "Asset" accounts different from each > >> other? They are all assets ... > >> * How do "Liability" and "Credit Card" accounts different from each > >> other? They are all liabilities ... > >> > >> > >> Are these distinctions without a difference? > >> Are they here because most users might not know that a "Bank" account is > >> an asset and a "Credit Card" is a liability? > >> Does GnuCash treat them differently? > >> > >> Thanks for the help, > >> -- > >> Chris. > >> > > Isn't that just a bit like stating that "your brother is a person, and > your > > wife is a person, so what's the difference? They are all persons?" I > would > > suggest that there is a difference <grin>. > > > > Yes, they are all assets, but different type of assets... "Cash" (called > > "Cash on Hand" in my GnuCash list of accounts) is cash lying around the > > house, or petty cash - it is not kept at an institution and thus only > > tracked by the user. Bank accounts - checkings and savings - are kept > by a > > bank; they may or may not pay interest. Other assets - such as a house - > > are different from either of the previous two -- you can't go out to eat > > and pay for it with your house (at least I hope it's not that expensive! > > <grin>) > > > > In the same way, credit cards are a type of liability; you use these to > > purchase stuff on a routine basis. I have also had other liabilities; for > > example, if I needed expensive plumbing work done, they will let me pay > it > > out over the next 12 months. That is a liability, but it is not a "credit > > card". > > > > These are legitimate distinctions in my mind. > > > > I think GnuCash may use different labels for the columns (if you are not > > using formal accounting terms of "debit" and "credit"). > > > > Also, the default list of transaction types is different depending on the > > account type. > > > > I hope this is helpful. > > > > I think you missed the thrust of his question -- namely, how does > GnuCash treat these differently? > Well, he did ask multiple questions, one of which was how GnuCash treats them, which I attempted to answer at the end. -- _________________________________ Richard Losey rlo...@gmail.com Micah 6:8 _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
