By James Kim 

The first step towards any kind of analysis is coming up with a means or a concise and effective system to track current and future progress. A financial statement in a form of a balance sheet does just that.

My first exposure to the syntax of the balance sheet is Robert Kiyosaki's book "Rich Dad Poor Dad" As it looks like this.

Where,

Income = Cashflow into pocket

Expenses = Cashflow out of pocket

Assets = Probable future benefits

Liabilities = Past obligations

As I write this, I see that there is an interesting way to view it.

The top row can be viewed as cashflow

The bottom row can be viewed as wealth

Also, I see that it can be viewed as a timepiece

Income and Expenses are part of the present

Assets are part of the future

Liabilities are part of the past

In relating this to circuit theory, it might be possible to translate these four corners of the table into some discrete electronic components.

Income = positive cashflow and part of the present. A power supply comes to mind

Expenses = negative cashflow and part of the present. A resistor comes to mind

Assets = Wealth accumulator and part of the future. A capacitor comes to mind (charging)

Liabilities = Wealth decrementor and part of the past. A capacitor comes to mind (dissapating)

All four corners are exposed to environmental effects. In electronics, it could be the atmosphere. In financials, it could be the market.

Electronics devices work better in cold temperatures

Financial circuits work better in highly active markets (hypothesis)