Equity Accounts

Equity accounts represent the financial ownership in a company and are visible in the balance sheet immediately after the liability accounts.

Liability Accounts

A liability account is a category within the general ledger that shows the debt, obligations, and other liabilities a company has.

Asset Accounts

An asset account is a category within a company’s general ledger account that shows the value of the assets it owns.

Chart of Accounts

The chart of accounts refers to the directory of every account made in the general ledger in an accounting system.

Accounting Ledger Format

Accounts are simply records of any transaction that has increased or decreased the total balance of an asset, liability or equity item.

Expanded Accounting Equation

The expanded accounting equation has the same formula as the basic accounting equation—but categorizes the owner’s equity into four main aspects for a better understanding of the term.

The Accounting Equation

The accounting equation is fundamental to the double-entry accounting system and, put simply, it states that the assets of a business must equal its liabilities & owner’s equity.

Financial Accounting

Financial accounting is the process of recording, classifying, summarizing & analyzing financial data.

Net Debt

Net debt is a liquidity metric that measures a company’s ability to settle all of its debts should they need to be paid immediately.