Account


Account

In accountancy, an account is a label used for recording and reporting a quantity of almost anything. Most often it is a record of an amount of money owned or owed by or to a particular person or entity, or allocated to a particular purpose. It may represent amounts of money that have actually changed hands, or it may represent an estimate of the values of assets, or it may be a combination of these.

Types of accounts

# Asset accounts: represent the different types of economic resources owned by a business, common examples of Asset accounts are cash, cash in bank, building, inventory, prepaid rent, goodwill, accounts receivable
# Liability accounts: represent the different types of economic obligations by a business, such as accounts payable, bank loan, bonds payable, accrued interest.
# Equity accounts: represent the residual equity of a business (after deducting from Assets all the liabilities) including Retained Earnings and Appropriations.
# Revenue or income accounts: represent the company's gross earnings and common examples include Sales, Service revenue and Interest Income.
# Expense accounts: represent the company's expenditures to enable itself to operate. Common examples are electricity and water, rentals, depreciation, doubtful accounts, interest, insurance.
# Contra-accounts: from the term ciccia, meaning to deduct, the value of which are opposite the 5 above mentioned types of accounts. For instance, a contra-asset account is Accumulated depreciation. This label represent deductions to a relatively permanent asset like Building.

Account represents financial and non-financial transactions of a firm, to know the total outcome of the investment made by investors.

ee also

* Bookkeeping
* Chart of accounts
* Double-entry accounting system


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  • Account — Ac*count , n. [OE. acount, account, accompt, OF. acont, fr. aconter. See {Account}, v. t., {Count}, n., 1.] 1. A reckoning; computation; calculation; enumeration; a record of some reckoning; as, the Julian account of time. [1913 Webster] A… …   The Collaborative International Dictionary of English

  • account — ► NOUN 1) a description of an event or experience. 2) a record of financial expenditure and receipts. 3) a service through a bank or similar organization by which funds are held on behalf of a client or goods or services are supplied on credit.… …   English terms dictionary

  • account — [ə kount′] vt. [ME acounten < OFr aconter < a , to + conter, to tell < compter < L computare: see COMPUTE] to consider or judge to be; deem; value vi. 1. to furnish a reckoning (to someone) of money received and paid out 2. to make… …   English World dictionary

  • account — I (evaluation) noun appraisal, assessment, com pre rendu, enumeration, financial statement, ledger, list of receipts and payments, ratio, register, statement, statement of debits and credits, statement of pecuniary transactions, tally, valuation… …   Law dictionary

  • Account — Ac*count , v. i. 1. To render or receive an account or relation of particulars; as, an officer must account with or to the treasurer for money received. [1913 Webster] 2. To render an account; to answer in judgment; with for; as, we must account… …   The Collaborative International Dictionary of English

  • account — n 1 *use, service, advantage, profit, avail Analogous words: benefit (see corresponding verb at BENEFIT): usefulness, utility (see USE): *worth, value Contrasted words: futility, vanity, fruitlessness, bootlessness (see corresponding adjectives… …   New Dictionary of Synonyms

  • account — The phrase on account of is a slightly formal preposition meaning ‘because of’ • (He remained miserable and ashamed, largely on account of his appetite which continued to torment him Anita Brookner, 1988). Its use (with or without of) as a… …   Modern English usage

  • account — [n1] written description of past events ABCs*, annal, blow by blow*, bulletin, chronicle, detail, explanation, history, lowdown*, make*, narration, narrative, play by play*, recital, report, run down, score, story, tab, take, tale, the picture*,… …   New thesaurus

  • Account — Ac*count , v. t. [imp. & p. p. {Accounted}; p. pr. & vb. n. {Accounting}.] [OE. acounten, accompten, OF. aconter, [ a] (L. ad) + conter to count. F. conter to tell, compter to count, L. computare. See {Count}, v. t.] [1913 Webster] 1. To reckon;… …   The Collaborative International Dictionary of English

  • account — /akˈkaunt, ingl. əˈkaunt/ s. m. inv. 1. account executive 2. (elab.) registrazione □ codice di registrazione …   Sinonimi e Contrari. Terza edizione

  • account — (izg. akȁunt) m DEFINICIJA int. mrežna identifikacija sa zaporkom i pravom pristupa koju dodjeljuje administrator sustava; korisnički račun ETIMOLOGIJA engl …   Hrvatski jezični portal


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