Account
What Does Account Mean?
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.
Investopedia explains Account
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.
Related Links
- Advanced Financial Statement Analysis - Learn what it means to do your homework on a company's performance and reporting practices before investing.
- What Is Money? - It's a part of everyone's life, and we all want it, but do you know how it gains value and how it is created?
