DEFINITION of 'Account'

1. An arrangement by which an organization accepts a customer's financial assets and holds them on behalf of the customer at his or her discretion.

2. A statement summarizing the record of transactions in the form of credits, debits, accruals and adjustments that have occurred and have an affect on an asset, equity, liability or past, present or future revenue.

3. A relaying of happenings from one party to another.


1. The Knights Templar were the first to hold assets on the behalf of others and make loans on those assets. As such the Knights Templar are credited with creating the foundations of today's banking system. Accounts were first created so that people could borrow to travel to the Holy Land, and hold and amass wealth that was often stolen during the Crusades.

2. This statement of transactions is the record of the growth and development, or shrinking and amortization of almost anything quantifiable.

3. An account is the passing on of information for the purpose of explanation.

  1. Frozen Account

    An account to which no withdrawals or purchases can be charged. ...
  2. Checking Account

    A transactional deposit account held at a financial institution ...
  3. Margin Account

    A brokerage account in which the broker lends the customer cash ...
  4. Account Balance

    1. The amount of money in a financial repository, such as a checking ...
  5. Vostro Account

    The account that a correspondent bank, usually located in the ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to ...
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  1. How long does a stock account have to be dormant before it can be escheated?

    A stock account is typically considered dormant and eligible for escheatment after five years of inactivity; however, this ... Read Full Answer >>
  2. Do banks have working capital?

    The concept of working capital does not apply to banks since financial institutions do not have typical current assets and ... Read Full Answer >>
  3. How does investment banking differ from commercial banking?

    Investment banking and commercial banking are two primary segments of the banking industry. Investment banks facilitate the ... Read Full Answer >>
  4. Why do commercial banks borrow from the Federal Reserve?

    Commercial banks borrow from the Federal Reserve primarily to meet reserve requirements when their cash on hand is low before ... Read Full Answer >>
  5. How does a bank determine what my discretionary income is when making a loan decision?

    Discretionary income is the money left over from your gross income each month after taking out taxes and paying for necessities. ... Read Full Answer >>
  6. What role does a correspondent bank play in an international transaction?

    A correspondent bank is most typically used in international buy, sell or money transfer transactions to facilitate foreign ... Read Full Answer >>

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