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A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.
Asset Account
An account on a company's balance sheet that represents tangible or intangible items of value owned by the company.
Liability Account
An accounting record that represents a company's legal debts or obligations that arise during business operations.
Other Accounts
Other accounts generally refer to miscellaneous financial accounts on a company's balance sheet that don't fit into standard categories like assets, liabilities, or equity.
- Distinguish the features and treatment methods for diverse categories of accounts, including assets, liabilities, equity, revenues, and expenses.
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Learning Objectives
- Distinguish the features and treatment methods for diverse categories of accounts, including assets, liabilities, equity, revenues, and expenses.
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