On Oct 30, 1996 02:58am, CHUCK THOMPSON wrote to CAROLE CAPUANO:
-=>> Quoting Carole Capuano to Bruce Wilson <=-
 CC>> On Oct 26, 1996 12:40pm, BRUCE WILSON wrote to BILL WHITE:
 BW>> On 24 Oct 96 05:57pm, Bill White wrote to Wayne Hicks:
 BW>>> Set up a CASH account.
 BW>> The problem with one is that it can't be "reconciled" like a bank
 BW>> account, transactions aren't cleared, and they'll be with you to
 BW>> your dieing day, no matter how many year-ends you do with Quicken.
 BW>> I've set up my Visa card as a reconcilable bank account, rather than
 BW>> as a liability account, for this same reason.  I "reconcile" it when
 BW>> I get my monthly statement, just like the checking account; and the
 BW>> payments are handled as transfers to it.
 CC>>
 CC>> Why couldn't you set it up as a 'credit card' and reconcile it every
 CC>> month, unless your VISA isn't a credit card. I did it in Quicken 5 and
 CC>> I am also doing it in Quickbooks. Just curious why you would setup a
 CC>> liability as an asset.
 CC>> Carole
 CT>  Carole ---
 CT>  It does sound different, doesn't it?
Different no, completely against standard accounting procedures, yes.
 CT>  However, in looking at this procedure, it's actually logical.  You get
 CT>  assets by using the credit card, and they don't cost anything until
 CT>  you pay for them (sounds like something my wife would say!).
What if it's not an asset but an expense, you're getting double-banged.
 CT>  When you pay for them by transfer from a checking account, say, to the
 CT>  credit card account, the "asset" is wiped out, and the checking
 CT>  account is reduced by the appropriate amount.  For the short period
 CT>  of time between purchase and payment, your assets are, actually,
 CT>  increased.
Amazing these theories, truly amazing....
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