Net worth = assets + liabilities??


S

Steve

Using Q2004, just ran a net worth report. The Overall Total at the
bottom = Total Assets + Total Liabilities. Am I missing something
here? Shouldn't this be assets minus liabilities?
 
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S

Steve

Don't you add a negatiave number to get the difference?
Sure, but here's what Q's doing:

Total Assets = $5,000

Total Liabilities = $1,000 (negative, in red)

Overall Total = $6,000
 
K

Ken Blake

In
Steve said:
Sure, but here's what Q's doing:

Total Assets = $5,000

Total Liabilities = $1,000 (negative, in red)

Overall Total = $6,000

I missed the beginning of this, but that sounds right to me. A
liability is by itself implied negative. A negative liability is
a double negative, which makes it positive.

$5000 - -$1000 does equal $6000.
 
B

Blackwood

In

I missed the beginning of this, but that sounds right to me. A
liability is by itself implied negative. A negative liability is
a double negative, which makes it positive.

$5000 - -$1000 does equal $6000.
I agree, I don't have Q2004, but in Q2002's Net Worth Report, liabilities
normally show as positive numbers and net worth = assets - liabilities.

Unless Q2004 is different, it sounds as though Steve's liabilities are
showing with the wrong sign.
 
S

Steve

Ken Blake said:
I missed the beginning of this, but that sounds right to me. A
liability is by itself implied negative. A negative liability is
a double negative, which makes it positive.
Ahhh, that's it, thanks Ken. I just assumed Q was showing the
negative number and then adding the two, but you're right, it's
subtracting. So when Q shows a negative net worth number in a
liability account, it's actually a positive number. A bit confusing,
but that explains it.
 
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M

MikeG

Steve...I just went back and looked at mine again, Q04 P, and on the home
page, the networth is working correct for me. i.e. liab in red and assets
etc in black. I did the math with a handheld calc and it was right. I also
did a networth report and looked at the networth graph, both correct. So,
where exactly are you seeing this in quicken, or are you saying now that
you entered liabilities as a negative your self, I would think they would
not show up as red then??
 
K

Ken Blake

In
Steve said:
Ahhh, that's it, thanks Ken. I just assumed Q was showing the
negative number and then adding the two, but you're right, it's
subtracting. So when Q shows a negative net worth number in a
liability account, it's actually a positive number. A bit confusing,
but that explains it.

You're welcome. Glad to help.
 
S

Steve

MikeG said:
Steve...I just went back and looked at mine again, Q04 P, and on the home
page, the networth is working correct for me. i.e. liab in red and assets
etc in black. I did the math with a handheld calc and it was right. I also
did a networth report and looked at the networth graph, both correct. So,
where exactly are you seeing this in quicken, or are you saying now that
you entered liabilities as a negative your self, I would think they would
not show up as red then??
If the amount in a liability account is a negative number (an amount
you owe), then it should show up under liabilities in the net worth
report in black, as a positive number, to be deducted from assets.

But if, for instance, you have a credit card account that has a
positive (credit) balance (maybe because you've returned something, or
whatever), that number will show up in the net worth report in red, as
a negative number. Again, this will be deducted from assets, but
since you're deducting a negative number, it will actually increase
your assets (as it should).

Now, is that crystal clear, or what!? :)
 
A

Andrew

Steve said:
Using Q2004, just ran a net worth report. The Overall Total at the
bottom = Total Assets + Total Liabilities. Am I missing something
here? Shouldn't this be assets minus liabilities?
So are you 100% sure you have you done the math on the report? Are you sure
that Quicken's bottom line number is not your TOTAL ASSETS line minus the
TOTAL LIABILITIES line? Mine is for Q2004D.
 
S

Steve

So are you 100% sure you have you done the math on the report? Are you sure
that Quicken's bottom line number is not your TOTAL ASSETS line minus the
TOTAL LIABILITIES line? Mine is for Q2004D.
This has already been hashed out, see previous posts...
 
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S

scott s.

If the amount in a liability account is a negative number (an amount
you owe), then it should show up under liabilities in the net worth
report in black, as a positive number, to be deducted from assets.
I think that's why bookkeepers think in terms of credits and debits,
not positive and negative. That way you only have to enter a
matching credit and debit (double entry) and not worry. Though there
are still some conceptual problems with asset accounts like
depreciation that have a credit balance.

scott s.
..
 
A

Andrew

Steve said:
This has already been hashed out, see previous posts...
Steve - yes, absolutely you're right. Trust me, when I wrote the post, it
hadn't been! Optonline took a long time to post this one. Sorry.
 
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S

Steve

Andrew said:
Steve - yes, absolutely you're right. Trust me, when I wrote the post, it
hadn't been! Optonline took a long time to post this one. Sorry.
Hey, no problem! :)
 

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