The 'account groups' are:
'Assets' 'Liabilities' 'Income' or 'Revenue' or 'Production' 'Expenditure' or 'Expenses' or 'Consumption'
Typical 'asset' 'accounts' are:
Cash account Equipment account Real estate account Debtors account
A business might usefully have 4 'asset' 'accounts', corresponding to these 4 'assets'.
Typical 'consumptions' are:
Payments for wages Payments for tax Payments for electricity Payments for telephone Payments for postage Payments for raw materials
Typical 'liability' 'accounts' are:
Mortgage account Credit card accounts Bills payable or Creditors account
'Liabilities' might be recorded in a mortgage 'account', a credit card 'account' and a bills payable or creditors 'account'.
Typical 'productions' are:
Sales of goods and services Interest on money in the bank Reimbursement of 'expenses' incurred on behalf of someone else
Typical 'transactions' are:
Paying bills Sending invoices Purchasing goods by credit card Lending or borrowing money 'Depreciation'
Every 'transaction' refers to categories of money called 'accounts'.
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