Introductory Accounting

CHAPTER4

Managing Your Accounts

In This Chapter

• Categorizing your financial activity by account
• Balance sheet accounts: Assets, Liabilities, and Equity
• Income statement accounts: Revenue, Cost of Goods Sold, Expenses, and Other Revenue/Expense
• Customizing your chart of accounts
• Ensuring balance

In this chapter, we discuss the foundation of your books—the chart of accounts. As mentioned in Chapter 1, accounts can be thought of as various buckets in which you categorize the money-related activities of your business. The chart of accounts lists the specific buckets for your business.

But before we get to the chart of accounts, let’s review the ...