Sign convention: Difference between revisions
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imported>Doug Williamson (Update.) |
imported>Doug Williamson (Add examples.) |
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Many errors and failures of understanding result from not establishing sign conventions, or not following them consistently. | Many errors and failures of understanding result from not establishing sign conventions, or not following them consistently. | ||
Examples of sign conventions include: | |||
*Assets / (liabilities) | |||
*Income / (expense) | |||
*Inflow / (outflow) | |||
*Mostly positive | |||
Revision as of 11:15, 21 May 2017
In reporting and modelling, a decision about the meaning of positive and negative numbers.
Many errors and failures of understanding result from not establishing sign conventions, or not following them consistently.
Examples of sign conventions include:
- Assets / (liabilities)
- Income / (expense)
- Inflow / (outflow)
- Mostly positive
