Account class
The five fundamental kinds of account: asset, liability, equity, revenue, and expense. Every ledger account is one of them.
In Solo Superstars
Assets, liabilities and equity feed the Balance sheet; revenue and expenses feed the Income statement. The app colors code badges by class (with finer splits for cost of goods sold, other income, and contra accounts) so a list of transactions can be scanned in one pass.
Example
Checking is an asset, a credit card balance is a liability, owner contributions are equity, sales are revenue, rent is an expense.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- account type
Related
- Account code — The four-digit number on a ledger account. The first digit tells you the class: 1 assets, 2 liabilities, 3 equity, 4 revenue, 5 cost of goods sold, 6–7 expenses, 8 other income, 9 other expenses.
- Balance sheet — What you own, what you owe, and what is left over, as of one date. Assets always equal liabilities plus equity.
- Income statement — Revenue, costs and expenses over a period, ending in net income. The report that says whether you made money.
- Contra account — An account that reduces another one on the same statement. Sales returns reduce revenue; accumulated depreciation reduces assets; owner draws reduce equity.