An account is a unique record for each type of asset, liability, equity, revenue and expense.
- Asset – Something that is expected to generate future benefit and is owned or controlled by the company.
- Liability – A company’s legal debts or obligations.
- Equity - An owner's rights or claims to the property (assets) of the business.
- Revenue - Fees earned from providing products or services.
- Expense - Decrease in the owner's equity resulting from an outflow of cash or other valuable assets to a person or company.
A Chart Of Accounts (COA) is comprised of individual account records.