The purpose of accounting is to provide economic information about a household, organization, or government. Accounts are generally divided into “income accounts,” which record receipts and outlays during a given period such as a year, and “asset accounts,” which provide a snapshot of the assets, liabilities, and net worth of an entity at a given date. People are most familiar with the income accounts and balance sheets of businesses, but the same concepts apply equally well to individuals, governments, and nations.
ACCOUNTS AND ACCOUNTING
