account definition and meaning

If Lani can’t account for the company’s missing money, she’ll be fired from her job. These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘account.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Definition and synonyms of account from the online English dictionary from Macmillan Education. Close your vocabulary gaps with personalized learning that focuses on teaching the
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• ’ The ATM or online account service is asking whether you want to see a list of your recent transactions.
• In banking, the term ‘accounts’ refers to ongoing financial relationships between customers and their bank.
• Account is a very common word, especially when discussing a person’s access to online software or platforms.
• In most cases, the verb has the same meaning in business and lay contexts.

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.

OTHER WORDS FOR 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.

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.

account Business English

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 Account Definition & Meaning 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.

In this context, an account generally refers to an established customer, rather than an entity with which a company does business just once. Bank accounts are arrangements that customers have with their bank. People with bank accounts may deposit and withdraw funds, and in some cases earn interest. A record in the general ledger that is used to collect and store similar information. For example, a company will have a Cash account in which every transaction involving cash is recorded.

Trending Words

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 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.

• People with bank accounts may deposit and withdraw funds, and in some cases earn interest.
• We might do this by using the services of a reputable credit agency such as Experian.
• As such, the Knights Templar are sometimes credited with creating the foundations of today’s banking system.
• We will discuss in details in other accounting tutorial concepts how to post journal entries in to ledger accounts.

A customer looking for the flexibility of depositing cash and making purchases and payments for goods and services will open up a checking account at a financial institution. This checking account has many advantages compared to holding money in her possession, including higher security, electronic https://kelleysbookkeeping.com/estimated-useful-life-and-depreciation-of-assets/ access to funds, bill payment options, and much more. Many people also use credit accounts to borrow money for major and minor purchases. Common credit accounts include revolving credit accounts, like credit cards and lines of credit, and installment loan accounts like car loans or mortgages.

Examples of account

Payment terms may be two weeks, 30 days, or even 60 or 90 days. Account is a T-Form, generally it looks like letter word “T”, and it can be called as T-account. T account is an appropriate form to analyze the accounts and it shows sides of account i.e. debit side and credit side of an account. The Knights Templar were the first to hold assets on behalf of others and make loans on those assets. As such, the Knights Templar are sometimes credited with creating the foundations of today’s banking system.