A chart of accounts is a list of all accounts tracked by a single accounting system, and should be designed to capture financial information to make good financial decisions. Each account in the chart is assigned a unique identifier, typically an account number. Each account in the chart is classified into one of the five categories: Assets, Liabilities, Equity, Income and Expenses. In accountancy, an account is a label for recording a quantity of almost anything. ... Accountancy (British English) or accounting (American English) is the process of maintaining, auditing, and processing financial information for business purposes. ... In accountancy, an account is a label for recording a quantity of almost anything. ... In business and accounting an asset is anything owned, whether in possession or by right to take possession, by a person or a group acting together, e. ... In the most general sense, a liability is anything that is a hinderance, or puts one at a disadvantage. ... For other uses, see Equity (disambiguation). ... Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ... In accounting, an expense is a general term for an outgoing payment made by a business or individual. ...
The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number.
Many industry associations publish recommended charts of accounts for their respective industries in order to establish a consistent standard of comparison among firms in their industry.
For example, if the accounting system is set up with a miscellaneous expenseaccount that later is broken into more detailed accounts, it then would be difficult to compare those detailed expenses with past expenses of the same type.
Share your thoughts, questions and commentary here
Want to know more? Search encyclopedia, statistics and forums:
Press Releases |
The Wikipedia article included on this page is licensed under the
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m