📣 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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