Financial account

A financial account (or, simply, account; hereinafter, the Account) is an accounting device used in bookkeeping to record increases and decreases of business transactions relating to assets, liabilities, capital, withdrawals, 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 increases (debits) and decreases (credits) or, vice versa, accounts payable increases (credits) and decreases (debits).

Rules of debit and credit

Main wikipage: Rules of debit and credit

• Principal accounts, which are assets, withdrawals, and expenses, are debited when they increase and credited when they decrease.
• Auxiliary accounts, which are liabilities, capital, and revenue, are debited when decrease and credited when they increase.

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.