Types of Accounting

Types of Accounting

Double-entry accounting makes use of only five types of accounting to record all of the transactions that may often be recorded within an accounting system. You will find sub-types of The list below, however all financial purchases could be recorded making use of these types of accounting. The 5 account types will be the following:

Balance sheet accounts:

1. Liabilities: Debts which are due by the company.

2. Assets: Things of worth which are held and utilized by the company.

3. Equity: The owner's claim to business assets.

Profit and loss accounts:

4. Expenses: Costs sustained for the duration of business

5. Revenue: The amounts gained in the sale of services and goods.

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