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Corporate Management > Accounts

Accounts are systematic arrangement showing the effect of transactions and other events on a specific balance sheet or income statement item. An account is usually expressed in money. A separate account exists for each asset, liability, stockholders' equity, revenue, and expense. Accounts are the way in which differing effects on the basic business elements are categorized and collected. It can also be defined as a contractual relationship between a buyer and a seller under which payment is made at a later time. The term open account or charge account is used, depending on whether the relationship is commercial or personal.

 
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