Types of Accounts

Here’s what a money market account isn’t: It isn’t a checking account. Some MMAs have check-writing and debit card features. But, as with savings accounts, they are limited by the Federal Reserve to six “convenient” transfers or withdrawals a month — including by check, debit card swipe or online transfer.

Accounts Receivable – Accounts Receivable is an asset that arises from selling goods or services to someone on credit. The receivable is a promise from the buyer to pay the seller according to the terms of the sale.

Unlike a brokerage account, which allows an investor to buy and sell securities, a bank account is used for savings. Types of bank accounts include savings accounts and checking accounts.

A cash account is a brokerage account in which a customer is required to pay the full amount for securities purchased, and buying on margin is prohibited. Cash accounts and the purchase of securities on margin are governed by the Federal Reserve's Regulation T.

The first market-linked CD was offered by Chase Manhattan Bank in March 1987. How MLCDs work. A Market-linked CD's performance is dependent upon the performance of a market or index. As the market goes up, so does the CD's potential return. Conversely, if the value of the market or index falls, the return on the market-linked CD will, too.

Credit card. A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services, based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus other agreed charges.

For example, a savings account at a credit union is known as a "share account" because it represents your share of ownership in the credit union (and those accounts pay monthly dividends). For more information, learn how credit unions work. They are often friendly, community-focused institutions.

Corporate Equity Accounts Common Stock – Common stock is an equity account that records the amount of money investors initially contributed to the corporation for their ownership in the company. This is usually recorded at the par value of the stock.

Expenses accounts are equity accounts with a debit balance. Expense accounts are considered contra equity accounts because their balance decreases the overall equity balance. In other words, debiting an expense account increases the balance instead of decreasing it like most other equity accounts.

Expenses accounts are equity accounts with a debit balance. Expense accounts are considered contra equity accounts because their balance decreases the overall equity balance. In other words, debiting an expense account increases the balance instead of decreasing it like most other equity accounts.

Income statement accounts are one of two types of general ledger accounts. (Balance sheet accounts make up the other type.) Income statement accounts are used to sort and store transactions involving revenues, expenses, gains, and losses. The income summary account is also an income statement account.

What Is an IRA? An individual retirement account (IRA) allows you to save money for retirement in a tax-advantaged way. An IRA is an account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis.

The balances in liability accounts are nearly always credit balances and will be reported on the balance sheet as either current liabilities or noncurrent (or long-term) liabilities. The company with the liability account for the debt or payables is known as the debtor.

A liability account is a general ledger account in which a company records its debt, obligations, customer deposits and customer prepayments, certain deferred income taxes, etc. that are the result of a past transaction.

The revenue account is an equity account with a credit balance. This means that a credit in the revenue T-account increases the account balance. As shown in the expanded accounting equation, revenues increase equity. Unlike other accounts, revenue accounts are rarely debited because revenues or income are usually only generated.

A savings account is one of the simplest types of bank accounts. It allows you to store cash securely and earn interest on your money. Banks and credit unions have three kinds of savings vehicles, each with varying requirements and levels of return.

The Undeposited Funds account is an Other Current Asset account that’s automatically created by QuickBooks to record funds received by a company that are not immediately deposited in a bank account. When you record customer payments by clicking on the Customers->Receive Payments menu selection, you’re recording individual receipts.