Aktivkonten (EN)

Definition

Asset accounts are accounts in accounting that record assets and expenses. They have a debit entry for balances and increases, as well as a credit entry for decreases. Asset accounts are components of the balance sheet and show the assets of a company. They are an essential part of double-entry bookkeeping and must always be balanced.

Booking flow for asset accounts

flowchart LR     A[Balance/Increase] --> B[Debit entry]     C[Decrease] --> D[Credit entry]     B --> E[Asset account]     D --> E     E --> F[Balance sheet] 

In context

• Typically used together with liability accounts and equity accounts
• Related to: Balance sheet, double-entry bookkeeping, Debit and Credit
• Example use: Recording receivables, inventories, machinery or operating expenses