📣 Account category

📣 Account category

Many of you may have heard of accounts where the diversity and the abundance of information make it difficult for some to understand. This article will discuss account classification in a simple, concise, and quick manner.

- Accounts / Liabilities

Obligations to be paid, such as bank loans, creditors, outstanding balances

- income

Proceeds from work, business, sales, profit, bank interest

- Assets

Rights held by the business such as money, deposits for machinery, equipment, advance expenses, debtors, residual goods

- Owner's Equity

Initial capital used by owners to build the company, shares, retained earnings

- expenses

investment money lost while doing business, such as employee wages Depreciation of machines

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