Abiblo Economics - Account
It is a statement of activities over a specified period.
Accountability is an obligation to produce such statement. The directors of companies are accountable to the shareholders.
Account can take various forms. Account may be the statement of the relation between two parties. For instance, bank account records the borrowing, deposits and withdrawal of the customers. Accounts of the goods and services provided to the customers being kept by the firms. Goods being provided on account are supplied on credit. An account rendered is a demand for payment for services as well as good supplied.
Account also means a systematic summary of activities in money terms of a business over a specified period of time usually annually. There are two common statements in such accounts such as the balance sheet and profit and loss account.
A profit and loss account shows the receipt of payments and the profit and loss made during an accounting period.
A balance sheet account shows the assets and liabilities of a firm on a specified dates at the start and at the end of an accounting period.
Accountant and are auditors and producers of accounts. They are professionally qualified.
The accounts have to be credible to the courts, creditors and tax authorities. Accounts of firms must be certified as accurate by professional auditors.
The surveys of the economic activities of a nation are stated on the national income and expenditure accounts. They consists of analysis of the production of goods and services, the expenditures of investors, consumers and the government and distribution of the incomes. Based on the national income accounts related to transactions with the rest of the world, the current account records sales and purchases of goods and services, and property transfers and incomes. The capital account records sale and purchase of assets such as real foreign direct investments, inwards and outwards and financial transactions, sales and purchases of securities abroad and the repayment and making of international loans.
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