What Are Balance Sheet Accounts?

By Craig Anthony

0 min read

Balance sheet accounts are one of the two main types of general ledger accounts; the other type is income statement accounts. Balance sheet accounts organize, record, and sort the various types of transactions related to the three balance sheet sections: assets, liabilities, and equity. Balances within each of these accounts comprise the company’s overall balance sheet, which is one of the three main financial statements used in business.

Example accounts within each of the main sections include:

Assets: cash, accounts receivable, inventory, equipment, and investmentsLiabilities: accounts payable, notes payable, taxes payable, and long-term liabilities Equity: retained earnings, capital stock, and paid-in capital

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Why Accountants Should Encourage Small Business Owners to Adopt Standard Financial Statements

Although small businesses may think they don’t need complex reports, there are…

Read more

How to Set up Contra Accounts

Setting up a contra account is an easy way to show amounts…

Read more

Helping New Non-Profits Establish Smart Financial Control Procedures

Good accountants can help new non-profits guard against fraud or financial wrongdoing…

Read more