Oct 28, 2016

Accounting principles used to define men and women

This write up led to a heated argument. between some of us.  Really, men argued that they are incomes while women are the expenditures,

The men always accuse women of been extravagant, making the world revolve around them as they parade themselves as source of incomes.

This write up made me remember all the double entry principles I learnt back in school.
 Debit all Assets and expenses
Credit all Incomes and Liabilities

While women "follows the same logic-all expenses are on the left" I quickly added in my head that all "ASSETS" are also debited (that is, recorded in the left).

On the other hand, "all income is posted on the right" I also did not forget to add that all "LIABILITIES" are also credited (posted to the right).

It's simple, women like to spend but are great assets to the men not to mention the world, while the men bring the incomes but one accounting principle that quickly comes to mind is that of MATCHING PRINCIPLE which argues that every income must be matched alongside the corresponding expenditures, meaning that the income if not matched with the expenditure can only be one thing, a LIABILITY

So it's simple without the expenses the income is a liability (without the women the men are just but hmmmm....) in other to have a complete Financial statement or even just a Statement of Financial position(Balance sheet) ,all the Assets,Expenses,Incomes and Liabilities are duly recognized.

We are all important to make things work in a home.





3 comments:

  1. nice article,though I feel that what needs to match income should be both investment and expenditure,of which investment represents the children

    ReplyDelete