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