Accounting Fundamentals Lecture Three - Accounts

First, what accounts are accounts? Accounts are the names specified in the scientific classification of the contents of accounting objects.

It is necessary to classify categories and stipulate names of accounting objects, but to comprehensively and systematically record and reflect changes in assets caused by various economic activities, we must also rely on specific forms and methods on the basis of classification, which is to set up and use accounts.

The account is set up according to accounting subjects. It is a bookkeeping entity that classifies all kinds of economic businesses and records them systematically and continuously, reflecting changes in assets, liabilities and owners' equity.

The name of the account is the name of the account. The accounting content stipulated in the accounting items is the economic content that the account should record and the accounts should be set accordingly according to the classification of accounting subjects.

For example, enterprises should set up assets accounts, liabilities accounts, owners' equity accounts, cost accounts and profit and loss accounts. Starting from the characteristics of needs and subjects, the corresponding accounts should be set up according to the general classification subjects, the two level subjects and the detailed classification subjects, so as to facilitate classification, aggregation, generalization, and detailed and detailed accounting of data.

Two, the format accounts of accounts are used as a form of recording and reflecting economic business activities. Its basic function is to facilitate the categorization of the assets, liabilities, owners' equity, costs, profits and losses caused by various economic activities and to collect and summarize them in a coherent way.

In order for an account to function, it should not only identify its name and classify it, but also make it have the corresponding structure.

The change of assets, liabilities and owners' equity caused by the occurrence of all economic operations is nothing more than two cases of "increase" and "decrease".

Therefore, each account should be divided into two directions: the increase of one party's registration and the reduction of the other party's registration. This is the basic structure of all accounts.

In order to illustrate the problem, the basic structure of accounts can be simplified to the left and right two party, that is, "T-shaped".