Chart of Accounts: Definition, Setup & Examples

What comprises primary financial

1. Instead of recording it in the “Lab Supplies” expenses account, Doris might decide to create a new account for the plaster.
2. For example, balance sheets are typically used for asset and liability accounts, while income statements are used for expense accounts.
3. Some accounting apps, like QuickBooks, will actually set up a chart of accounts for your business automatically, which is extremely convenient.
4. These are divided on a positive/negativescale- assets include bank accounts, realestate, prepaid expenses, and accounts receivables.

The income statement accounts

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