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Learn the meaning and history of debits and credits in double-entry bookkeeping, and how they are used to record changes in value from business transactions. Find out the rules and examples of debits and credits for different types of accounts.
The classification of accounts into real, personal and nominal is based on their nature i.e. physical asset, liability, juristic entity or financial transaction. The further classification of accounts is based on the periodicity of their inflows or outflows in the context of the fiscal year: Income is a short term inflow during the fiscal year.
Accounting is the process of recording, processing and analyzing information about economic entities, such as businesses and corporations. It has various subfields, such as financial accounting, management accounting, auditing and tax accounting, and a long history dating back to ancient civilizations.
A chart of accounts is a list of financial accounts and reference numbers, grouped into categories, such as assets, liabilities, equity, revenue and expenses, and used for recording transactions in the organization's general ledger. Learn about the types, structure, administration and international aspects of charts of accounts.
Learn how accounting originated in ancient civilizations and evolved over time. Explore the early development of accounting in Mesopotamia, Egypt, Babylon, Rome, India, and China, and the modern profession of chartered accountancy.
Double-entry bookkeeping is a method of bookkeeping that relies on a two-sided accounting entry to maintain financial information. Every entry to an account requires a corresponding and opposite entry to a different account, based on the principle of debit and credit.
Learn what the current account is, how it measures a country's trade and income with the rest of the world, and how it affects its net foreign assets. Find out how to calculate the current account balance and its components using examples and formulas.
Financial accounting is the branch of accounting that reports financial transactions of a business to various stakeholders. It involves the preparation of financial statements that comply with accounting standards and principles, and have relevance, faithfulness, verifiability, comparability, understandability and timeliness.