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 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

Category Type Normal balance (or increase) Decrease
Principal
account
Assets Debit Credit
Expenses
Withdrawals
Auxiliary
account
Liabilities Credit Debit
Revenue
Capital
Main wikipage: Rules of debit and credit

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.