account
Financial Dictionary — Core Accounting
Definition
A record in the general ledger that is used to collect and store similar information. For example, the company will have a cash account in which every transaction involving cash is recorded. The company will have an account for all assets, liabilities, shares, revenues, expenses and its sub-accounts
Detailed Explanation
An account is a record in the general ledger used to accumulate transactions of a similar type (cash, receivables, revenue, expenses). Each account has a running balance based on debits and credits.
Common Uses
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Practical Example
- Example: Teams reference **account** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.