How is the current balance of an account computed by systemaccounting?

A:

The balance of any account is computed similarly to how programmers build the most recent version of their code using revision control. Instead of building from all the changes in a codebase to determine its current version, systemaccounting sums all the transactions comprising an account's history to determine its current balance:

Let:

R = the sum of all transactions where a user was on the revenue side,

E = the sum of all transactions where the same user was on the expense side.

Now:

R - E = the current balance of a user's systemaccount.

While lines of credit may be offered between users, negative balances are not possible because systemaccounting is not a lender; it's an app that is designed to define and record the acceleration of value.

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