Talk:Accounting identity

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Merger

Merge - The concept being described in this article is the same as the Accounting equation article. I suggest this article be merged into the Accounting equation article as it is the same. EnviroGranny 13:19, 15 April 2007 (UTC)[reply]

I think they should be merged. The accounting equation is an example of the accounting identity. It should be a subsection of it. Or it could be merged into the definition of shareholders equity, or as an example of bookkeeping in a balance sheet, but I don't think an 'accounting equation' is a subject of interest in itself. Plus it is only AN accounting equation, not THE accounting equation. There is no such thing that I know of(Financeeditor 05:39, 28 April 2007 (UTC)).[reply]

I have no objection to merging the other article here or somewhere else; as you point out, the accounting equation is just a specific case. I've heard it referred to more often as the balance sheet equation, but don't have religion on that. I think the accounting identity concept should remain, though, whereas the proposal above was to merge in the other direction.--Gregalton 07:21, 28 April 2007 (UTC)[reply]

No Merge - The economics concepts involved are distinct and not covered in the other article (and I'll admit I don't like the vague term accounting equation, since it doesn't express the identity aspect).--Gregalton 15:59, 15 April 2007 (UTC)[reply]

Comment - simply merge your 'key' points into the previously created article. EnviroGranny 17:21, 15 April 2007 (UTC)[reply]

I've taken a look at the other article, and I think each stands alone sufficiently. The subjects overlap but are not the same. The accounting equation article appears primarily to be about the "A = L + E" equation (the core accounting equation), not about the concept of an accounting identity. As this article discusses, there are many other accounting identities that are not this equation, and that wouldn't necessarily be covered there.--Gregalton 10:26, 16 April 2007 (UTC)[reply]

Update: Please note there was a request for deletion discussion, with consensus a) not to delete and b) no merge. That discussion is archived in the articles for deletion archives.--Gregalton 11:50, 22 July 2007 (UTC)[reply]

"The equities"?

The Description section refers to "the equities, including liabilities ... and equity...". I don't think that I've heard that terminology before -- is it really standard to refer to "the equities" rather than just "liabilities and owners' equity"? Duoduoduo (talk) 22:11, 4 August 2013 (UTC)[reply]

I can't find such a usage in any source, so I'm removing it. Duoduoduo (talk) 17:23, 5 August 2013 (UTC)[reply]

Equation of Exchange

Isn't the Equation of exchange, MV=PQ, an identity that can be added to the "Economics" section? EPM (talk)

Bank assets = Bank liabilities + Owners' equity

The most basic Accounting identity is A=L+OE. So how is banking in the economics section any different? (Seems unnecessarily redundant.)

A key identity that is used in explaining the multiple expansion of the money supply is... does A=L+OE actually explain the multiple expansion of the money supply? (seems like missing info?)

Fractional-reserve banking means for every incremental unit of (L) liability (outside deposits) a bank wants to hold, they must also maintain some incremental fraction of that (x% * L) in OE. They need skin in the game; can't grow their balance sheet to the sky. So, L * x% must be < OE. And, back to the main point, is that actually an Accounting Identity (as in equals sign), or is it merely Fractional-reserve banking?

Rick (talk) 14:15, 19 October 2015 (UTC)[reply]

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