This information HAS errors and is made available WITHOUT ANY WARRANTY OF ANY KIND and without even the implied warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. It is not permissible to be read by anyone who has ever met a lawyer or attorney. Use is confined to Engineers with more than 370 course hours of engineering.
Every transaction effects at least two accounts.
Double entry accounting depends on the following equation over a time period where
A − L = I − E
It is handy to move gains from earlier years at the closing of the books into an equity account - equity accounts are actually Liability accounts.
Account type | What it does |
---|---|
Equity accounts | Can be thought of as a Liability account and should make any balance go to zero. |
Cost of goods sold | A special group of expense accounts |
Other revenue | A negative expense account for things that should not be counted as income |
other expense | A sub group of expense account. |
Stock Keeping Unit, pronounced SKŪ similar to skewer, but without the er. A SKU is identifier unique to the item for tracking in inventory. It identifies a unique item and is most often different from the model and/or part number.
Account number Range |
Account Type |
---|---|
1000 - 1999 | asset accounts |
2000 - 2999 | liability accounts |
3000 - 3999 | equity accounts |
4000 - 4999 | revenue accounts |
5000 - 5999 | cost of goods sold |
6000 - 6999 | expense accounts |
7000 - 7999 | other revenue (for example, interest income) |
8000 - 8999 | other expense (for example, income taxes) |