All Revenue Accounts Begin With The Number

Each revenue source is represented by a specific.

All revenue accounts begin with the number. A company that is a going concern will never have a net loss d. The sum of all the revenue account balances is greater than the sum of all the expense account balances c. Numbering for each revenue account can start from 4000. Other account titles may be used depending on the industry of the business such as professional fees for professional practice and tuition fees for schools.

Starting with a small number of accounts as certain accounts acquired significant balances they would be split into. If assets are classified by numbers starting with the digit 1 then cash accounts might be labeled 101 accounts receivable might be labeled 102 inventory might be labeled 103 and so on. It is the principal revenue account of merchandising and manufacturing companies. A chart of accounts coa is a list of the categories used by an organization to classify and distinguish financial assets liabilities and transactions it is used to organize the entity s finances and segregate expenditures revenue assets and liabilities in order to give interested parties a better understanding of the entity s financial health.

Service revenue revenue earned from rendering services. Thus each major category will begin with a certain number and then the sub categories within that major category will all begin with the same number. Asset accounts are on a company s balance sheet along with liability accounts and owners equity accounts. The chart of accounts is a listing of all the accounts in the general ledger each account accompanied by a reference number.

Some of the sub categories that may be included under the revenue account include sales discounts account sales returns account interest income account etc. Revenue accounts revenue account codes begin with 5 revenue accounts are used for transactions that record revenue or income that the university has received from an outside source such as the state of california the federal government student fees and various self supporting activities. List of revenue accounts. The chart is used by the accounting software to aggregate information into an entity s financial statements the chart is usually sorted in order by account number to ease the task of locating specific accounts.

Sales revenue from selling goods to customers. The chart of accounts is a listing of all accounts used in the general ledger of an organization. Revenue accounts 5000 5999. Cost of goods sold 6000 6999.

The expense account is the last category in the chart of accounts.