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An account is a label used for recording and reporting a quantity of almost anything. It is the:

  • Means by which management keeps track of the effects of transactions.
  • Basic storage unit for accounting data.

A chart of accounts is a list of all accounts tracked by a single accounting system, and should be designed to capture financial information to make good financial decisions. Each account in the Anglo-Saxon chart is classified into one of the five categories: Assets, Liabilities, Equity, Income, and Expenses.
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