What is an Account Definition & Meaning of Account

As you practice this list, you’ll have to rely on context clues in order to determine each word’s meaning in a particular sentence. Several of a word’s meanings might show up as answer choices — but only one answer will capture the meaning of the word in the context of the sentence. What does this question mean ‘Do you want to see your account statement?

Financial institutions charge account holders interest for the privilege of borrowing money in this manner. The term account generally refers to a record-keeping or ledger activity. While accounts once were mostly related to money, as with a list of a business’s transactions, now there are many other types. You can have a library account, which allows you to borrow books from the library. You can also have a loyalty account for a store, which tracks your purchases and gives you rewards for spending money with the store. Computer technology and the internet have given us even more accounts.

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A company selling merchandise on credit will record these sales in a Sales account and in an Accounts Receivable account. A business account may be a bank account for a company or trading individual. It might also be a commercial account between seller and buyer. In commerce, accounts are continuing relationship between suppliers (sellers) and buyers. Buyers pay for goods or services that they have received at a later date.

An account can be many things — such as a story, like if you give a friend an account of what happened at the party she missed. It can also be a business arrangement, like a bank account or an email account. The most necessary feature for accounts to exist is trust – both by the customer and supplier.

Account – definition and meaning

It is a tradition design and used to post debit amount using prefix “To” with particulars and post credit amount using prefix “By” with particulars. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. This is the British English definition of account.View American English definition of account.

Finally, “account” can also refer to a brokerage account, which holds customer assets at a licensed brokerage firm. In this type of account, an investor deposits money or other assets and the broker places trades on behalf of the client. An account can have several meanings in the accounting profession.

Phrases Containing account

In most cases, the verb has the same meaning in business and lay contexts. Unsurprisingly, countries where the degree of trust in business is high, are richer compared to those with lower levels. We might do this by using the services of a reputable credit agency such as Experian. As with most commercial entities, credit agencies charge for their services.

Most people have so many accounts that they can’t account for all of them or recount them in an account. If the number of accounts in this paragraph has your head spinning, imagine how accountants feel. In accounting, accounts are chronological https://kelleysbookkeeping.com/quarterly-tax-calculator/ records of changes in the value of a company’s liabilities and assets. Under this meaning, an account is another entity or person for whom a business acts as a supplier, and with whom there may be an outstanding accounts receivable balance.

When a company’s accounts are inspected, it is called an audit. In Accounting, an account is a record of all relevant business transactions in terms of money. Account consists all the statements by data wise regarding the business transactions as person, companies, representatives, asset & liabilities, income & expenditures, profit & loss .

• As you practice this list, you’ll have to rely on context clues in order to determine each word’s meaning in a particular sentence.
• Financial institutions charge account holders interest for the privilege of borrowing money in this manner.
• This is the British English definition of account.View American English definition of account.
• ‘Accounts’ processes debts and deposits in the world of banking.

The supplier needs to trust that his or her customer will pay. Additionally, the customer trusts that the supplier will deliver the goods or services on time and in good condition. In banking, the term ‘accounts’ refers to ongoing financial relationships between customers and their bank. Account Definition & Meaning ‘Accounts’ processes debts and deposits in the world of banking. On the ACT Reading Test, you’ll encounter questions that ask you to determine the meanings of common words in context. We’ve identified 170 high-frequency, multiple-meaning words of the sort that you’ll see on the exam.

Words nearby account

Bank accounts allow holders to write checks or use debit or ATM cards to make purchases and cash withdrawals against the balance in the account. These entries, often called postings, become part of a book of final entry or ledger. Examples of typical financial accounts are accounts receivable (money a company is owed), accounts payable (money a company owes), sales, loans, and mortgages. More examples of financial account entries are PP&E (property, plant & equipment), wages, payroll, and common stock.