Subject | Re: Stupidity in motion |
From | ed |
Date | 04/19/2013 02:17 (04/18/2013 17:17) |
Message-ID | <cf76243b-a010-4dfb-a144-26fd7edb8158@b2g2000yqe.googlegroups.com> |
Client | |
Newsgroups | comp.sys.mac.advocacy |
Follows | -hh |
Followups | -hh (1h & 10m) > ed Sandman (5h & 18m) |
i know. and you know i know because that's what i said.since they both cant be listed in the same column.ed-hh
there's no reason to- just because you don't consider it an asset doesn't mean that the loan would be considered a asset. the car wouldn't be listed in *either* column- just as i wouldn't list all the random crap in my house that i could sell on ebay as an asset if i were working up my net worth, even though, technically, they'd be assets.
Oh, it is still an asset ... it's just that you're choosing to list it as a zero,
in anticipation of depreciation & wear, etc.no. because most people simply don't count a lot of 'stuff' as assets in household accounting. do a test- ask as many people as you like to list their personal assets, and come back and tell us how many start listing household furnishings, clothes, nicknacks, etc. it won't be many.
sSimilarly, even though we can agree that a car isn't a good investment, it is still a colloquial "asset" from the aspect that it is a desirable/useful tool to accomplish certain tasks.ed
and colloquially, a liability is something that costs you money. which cars do, even if it has no loan and has some value left. =A0that'=
sometimes, sometimes not. examples already given.why this isn't as straightforward (outside financial accounting and the law) as 'a car is an asset.'-hh
Same is true of a house, too...so is it not an asset either? =A0Or even one that you'll list as a zero?
i... =A0just as i don't include the value of all my random crap that=
less=A0could sell on ebay, as the purpose of me keeping track of assets and net worth is to see where i stand long term. =A0bookkeeping the =A0current value of a vehicle (and other assets) that will be worth=
gaap is pretty irrelevant for personal accounting for most people. i would guess that includes you. unless you somehow manage your life on an accrual basis and pay mcdonalds on net30 terms i suppose. :P=A0in 15 years adds nothing to that view. =A0ymmv.Ah, but that's a question do appreciation vs depreciation,ed-hh
not reall; maybe i should have left out the long view- i wouldn't include it in a view of my net worth NOW either. =A0;D
Oh, it's still a depreciation question... Which is also why you're willing to "fast forward" it to zero upfront.as well as to what degree to ignore ankle-biters from the basic motivation of investments. =A0By the same type of logic, you would want to also not include your house, since you always need to live somewhere....right?ed-hh
if one were planning on living in their current house for the rest of their lives and passing it on to the kids(which some people do), that would not be a bad way of considering their house. =A0a million dollar house that you own free and clear does one no good if they are unwilling or unable to pull money out of it and live a poor life as a result. =A0but more practical people would clearly view a house with equity in it as an asset.
Which also follows conventional & general accepted accounting practices (GAAP).
yes, i know. you know i know because i said so.ed-hh
a house that's upside down might be a better example- technically it's an asset partially offsetting a large liability, but colloquially, you'll not get many people to agree THAT is an asset. =A0;D
On the contrary: =A0both are still assets -