Account

AAA

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.

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 TERMS
  1. Account Balance

    1. The amount of money in a financial repository, such as a checking ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to ...
  3. Checking Account

    A transactional deposit account held at a financial institution ...
  4. Frozen Account

    An account to which no withdrawals or purchases can be charged. ...
  5. Margin Account

    A brokerage account in which the broker lends the customer cash ...
  6. Vostro Account

    The account that a correspondent bank, usually located in the ...
Related Articles
  1. What Is Money?
    Economics

    What Is Money?

  2. Advanced Financial Statement Analysis
    Options & Futures

    Advanced Financial Statement Analysis

  3. An Investor's Guide To Bank Stress-Testing
    Investing Basics

    An Investor's Guide To Bank Stress-Testing

  4. What is the difference between a state ...
    Credit & Loans

    What is the difference between a state ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center