• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 2. Accounting 101 > What Is an Account?

What Is an Account?

An account is a descriptive title for financial information. On a financial statement that lists all the types of earnings and expenses for a company, or a statement that lists the types of items a company owns and the amounts it owes to others, each individual category is known as an account.

Accounts simplify the way financial information is organized to make the information easy to understand. For example, if you tell your banker that your company earned $100,000 last year and spent $75,000, that probably wouldn’t be enough to satisfy his curiosity regarding your ability to pay back a loan.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint