Sophia Tutorial Account Groups,

1. Types of Accounts An account is a record that provides information about a given asset, liability, equity, revenue, or expense. All accounts organize into what is called a chart of accounts, which details all of the accounts contained within a company's financial system. There are two main types of accounts, which we will cover in more detail in the next sections: 1. Permanent accounts, which are a company's assets, liabilities, and equity. 2. Temporary accounts, which are a company's revenue and expenses.  TERM TO KNOW Account A record that provides information about a given asset, liability, equity, revenue or expense 1a. Chart of Accounts As mentioned above, a chart of accounts is a detail of all the accounts contained within a company's financial system. It is organized by account type and categories, as shown in the example below: ©