Accounting Dictionary - Accounting Terms & Definitions
A: Account
Account is a record used in double entry accounting aimed to record each type or class of asset, liability, equity, revenue and expense.
Since double entry accounting is used, each account has two sides, i.e. Debit side and Credit side, where increases and decreases in the balance of a certain account are recorded. Each account also has opening and closing balance. For Asset class accounts opening and closing balance is always on the Debit side (Left side - like in the accounting equation). For Liability and Equity class accounts opening and closing balance is always on the Credit side (Right side - like in the accounting equation). Revenue and Expense accounts do not have opening and closing balances, i.e. they are equal to zero, since final balances of these accounts at the end of the accounting period are transferred to the Equity class account - Retained earnings.
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