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There are five main account type categories that all transactions can fall into on a standard COA. These are asset accounts, liability accounts, equity accounts, revenue accounts, and expense accounts. These categories are universal to all businesses.
These primary accounts of assets, liabilities, shareholders equity, revenue, and expenses can then be broken down into sub-accounts such as operating revenues, operating expenses, non-operating revenues, and non-operating losses.
There are five elements of a financial statement: Assets, Liabilities, Equity, Income, and Expenses. Each of these categories has its own unique set of information that is important to track for a business.
A chart of accounts is the filing cabinet youll find at the heart of your accounting system. It categorizes transactions into primary accounts such as assets, liabilities, equity, expenses and revenue. Subaccounts can be used to categorize transactions further.
The chart of accounts (CoA) is an index of all financial accounts in a companys general ledger. There are 5 major account types in the CoA: assets, liabilities, equity, income, and expenses.
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These can include asset, expense, income, liability and equity accounts. You may use each account for a different purpose and maintain them on your financial ledger or balance sheet continuously.
Whenever you need to record a new transaction, like an invoice to a client, an expense, a loan, etc., you need to record it correctly. In general, there are 5 major account subcategories: revenue, expenses, equity, assets, and liabilities.
A five digit chart of accounts is used by organizations that want to track information at the departmental level. With a five-digit code, they can produce separate income statements for each department.

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