Tag: Account

Accounting is a systematic way to record transactions. An account (in bookkeeping) refers to assets, liabilities, income, expenses, and equity, as represented by individual ledger pages, to which changes in value are chronologically recorded with debit and credit entries. These entries, referred to as postings, become part of a book of final entry or ledger. Examples of common financial accounts are cash, accounts receivable, mortgages, loans, PP&E;, common stock, sales, services, wages, and payroll.
A chart of accounts provides a listing of all financial accounts used by particular business, organization, or government agency.
The system of recording, verifying, and reporting such information is called accounting. Practitioners of accounting are called accountants.
An account may be classified as real, personal or as a nominal account
Example: A sales account is opened for recording the sales of goods or services and at the end of the financial period the total sales are transferred…