What’s what in finances: Accounts

What’s what in finances: Accounts

Information systems used to systematically and homogeneously record bank or money transactions.

In banking, an account refers to an arrangement by which an organization, typically a financial institution such as a bank or credit union, accepts a customer's financial assets and holds them on behalf of the customer at his or her discretion.

Account can also refer to a statement summarizing the record of transactions in the form of credits, debits, accruals, and adjustments that have occurred and have an effect on an asset, equity, liability, or past, present or future revenue.

Businesses are obligated to produce an annual set of accounts. If they are listed on the stock exchange, they must also show half-year profits (information regarding profits six months into the financial year).

Keeping a balance and control of your accounts will help you considerably in your finances, for profit-enhancing, and to know how much capital you have intended for expenses, investments, and savings.

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