Concept in Definition ABC

An account is the item and the tool basic that the accounting and any payment service. Through the accounts is that a company, association, institution and any other organization may have a proper and proper idea of ​​the transactions commercial activities carried out and any other activity that involves the entry or exit of money Of the same. Because of course, if a company does not carry a safeguard and conscience This fundamental aspect, surely, will have more than one problem in its passing and in its durability.

The accounts of record They are classified into two types. On the one hand there are the real ones that will treat and carry out the records of assets, liabilities and capital of the company and on the other hand, there will be the so-called nominal accounts, which are those that will treat the items of income and expenses.

The former will be part of what is called Balance sheet and the second will give way to the formulation of the profit and loss statement of a company.

Then the two large groups of accounts will be current assets, basically made up of cash for effective convertibles and all those elements or items that can be converted into cash in a short term. And then there is the liability represented by all those debts and obligations that the company has and that will increase with a bonus and decrease with a charge.

Among the main asset accounts we find the following: cash, banks, investments temporary, customers, merchandise, inventories, warehouse, debtors, advances to suppliers and documents receivable, while the liability accounts are the suppliers, documents payable, mortgage creditors, various creditors, interest collected in advance and rents collected by anticipated.

On the other hand, the sales will represent the income and the purchases the disbursements.