Difference between revisions of "Financial account"

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A [[financial account]] (or, simply, [[account]]; hereinafter, the ''Account'') is an accounting device used in [[bookkeeping]] to record increases and decreases of business transactions related to [[Assets]], [[Liabilities]], [[Owner's Capital]], [[Owner's Withdrawals]], [[Fiscal Revenue]], and/or [[Expenses]]. In other words, the ''Account'' is the [[concept]] that is used to record financial entries of a similar nature such as [[Cash at Bank]] increases (debits) and decreases (credits) or, vice versa, [[Accounts Payable]] increases (credits) and decreases (debits).
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A [[financial account]] (or, simply, [[account]]; hereinafter, the ''Account'') is an accounting device used in [[bookkeeping]] to record increases and decreases of business transactions related to [[Assets]], [[Liabilities]], [[Owner's Capital]], [[Owner's Withdrawals]], [[Fiscal Revenue]], and/or [[Expenses]]. In other words, the ''Account'' is the [[concept]] that is used to record financial entries of a similar nature such as [[Cash at Bank]] increases (or is [[debit]]ed) and decreases (or is [[credit]]ed) or, vice versa, [[Accounts Payable]] increases ([[or is [[credit]]ed) and decreases (or is [[debit]]ed).
  
  

Revision as of 21:53, 12 December 2018

A financial account (or, simply, account; hereinafter, the Account) is an accounting device used in bookkeeping to record increases and decreases of business transactions related to Assets, Liabilities, Owner's Capital, Owner's Withdrawals, Fiscal Revenue, and/or Expenses. In other words, the Account is the concept that is used to record financial entries of a similar nature such as Cash at Bank increases (or is debited) and decreases (or is credited) or, vice versa, Accounts Payable increases ([[or is credited) and decreases (or is debited).


Journalizing

Main wikipage: Journalizing

Rules of debit and credit

Rules of debit and credit
Category Type Normal balance (or increase) Decrease
Resource-origin accounts Assets * Debit Credit
Expenses *
Owner's Withdrawals
Claim-origin accounts Liabilities * Credit Debit
Fiscal Revenue *
Owner's Capital
* Adjusting accounts behave oppositely to the Accounts that they adjust
Main wikipage: Rules of debit and credit

Adjusting accounts

Main wikipage: Adjusting account

Chart of accounts

Main wikipage: Chart of accounts

Every organization can establish its own list of account titles, which is called the chart of accounts.