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The Significance of the Topic List of Important Accounts and Their Balances-

It is a very important topic for accounts and finance students. With List of Important Accounts and Their Balances Assignment Helpyou will get in depth knowledge in this area and your work will get completed on time. Let us understand the importance of this topic-

  • List of important accounts and their balances will help the students to understand the domain of accounting in a better way and the knowledge of these accounts can help a lot in determining the financial status of any organization.
  • There are generally 5 types of accounts which are assets, liabilities, equity, income or revenue and expenses. Their balances will give you a brief summary of the financial results of any business.
  • Assets account includes the valuable possessions of any organization like machinery, land and building, cash etc.
  • Liabilities account represent what the organization owes to other people like mortgages, loans etc.
  • Equity account represents that portion of the assets which the company owns outright.
  • Income statement or revenue accounts show how much income is generated from different activities like sale, interest, dividend etc.
  • Expenses account show the expenditure incurred in various fields to run the business successfully.
  • The income statement (profit and loss account) shows the balances of expenses and revenue accounts. The position statement (balance sheet) shows balances of assets, liability and equity accounts.
  • All these accounts are very important to understand as they form the base of accounting and finance field and by looking at them you can get the complete financial picture of any organization and how it is performing.

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