04-05-2017, 10:45 AM
An account (in accounting) refers to assets, liabilities, income, expenses and equity, represented by individual pages of the general ledger, which are chronologically recorded changes in value with debit and credit entries. These entries, called postings, are part of a final ledger or ledger. Examples of common financial accounts are sales, accounts receivable, mortgages, loans, PP & E, ordinary shares, sales, services, salaries and payroll.
A chart of accounts provides a list of all financial accounts used by a particular company, organization, or government agency.
The system for recording, verifying and reporting this information is called accounting.
Think of an account as an individual file in your filing cabinet. For example, the account called "Furniture" would list all the amounts spent on office furniture. The amounts are sorted in chronological order with increases in the value of office furniture in the left column (debit) and decreases in the value of the right hand (column of credit).
A chart of accounts provides a list of all financial accounts used by a particular company, organization, or government agency.
The system for recording, verifying and reporting this information is called accounting.
Think of an account as an individual file in your filing cabinet. For example, the account called "Furniture" would list all the amounts spent on office furniture. The amounts are sorted in chronological order with increases in the value of office furniture in the left column (debit) and decreases in the value of the right hand (column of credit).