Types of accounts from the viewpoint of accounting equation

From the viewpoint of accounting Equation accounts can be divided into five categories: The depiction (explanation, description)  about all types of accounts are given in the following:

Types of accounts

1. Asset account: The account kept classifying the transactions for which the asset increase or decrease is called an asset account. Example-Cash, land, prepaid rent, and so on.
2. Liability account: The account kept classifying the transactions for which the liability increase or decrease is called a liability account. Example – Accounts payable, notes payable, Unearned Revenue, Bank loan, etc.
3. Expenditure account: The account kept classifying the transactions for which the liability increase or decrease is called a liability account. Example- Accounts payable, notes payable, Unearned Revenue, Bank loan, etc.
4. Expenditure account: The account kept under different heads classifying the various expenditure of a business is called an expenditure account. Example-Salary account, Purchase account, Wages account.
5. Income account: The account kept under different heads having the transactions relating to income property is called income account. Example-Sales, Interest received service Revenue, Commission received, etc.
6. Owner’s equity account: The account related to ownership claim over the assets of the organization is called the owner’s equity account. Common share, Stock, Capital, Revenue, Retained earnings, etc.

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