The basics principle behind accounting in Eqonomize! is the idea of money flowing through transactions between accounts as reservoirs. A transaction represents a gain (you receive money), loss (you buy something), or transformation (you withdray from or deposit in a bank account) of money.

A transaction always means that money is moved from one account to another. An expense (something is bought) can for example mean that you pay with cash from your cash account. The money is then put in an expense account. This account represents the products and services you pay for. It represents the money that you do not have as a result of expenses, and is therefor useful for record keeping.

Incomes is usually put in a bank account and withdrawn from an income account. This means that income accounts will have a negative value, but to avoid confusion, the value of income accounts are shown as positive values.

Different income and expense accounts are used for categorisation, and are therefor more naturally referred to as categories. Other accounts, which represents the money you actually have and often are real world bank accounts, are simply referred to as accounts.