‫الجامعة الوطنية للتعليم عن بعد‬

‫جامعة التكوين المتواصل‬

‫‪English‬‬

‫‪20‬‬
‫‪23‬‬
‫جامعة التكوين المتواصل‬

‫‪Activity 02 the account‬‬

‫اإلسم ‪ :‬منال‬
‫اللقب ‪ :‬مجتوح‬
‫الشعبة ‪ :‬محاسبة و مالية‬
‫الفوج ‪G530 :‬‬
‫السنة ‪ :‬الثانية ليسانس‬
‫السداسي ‪ :‬الرابع‬

‫‪manel.medjtouh@etu.usthb.dz‬‬

‫‪2023‬‬
 ‫جامعة التكوين المتواصل‬

• Explain what an account is and how it helps in

the recording process?

In accounting, an account is a record of financial transactions related to a

particular asset, liability, equity, revenue, or expense. Accounts are used
to track changes in the financial position of an organization over time.
Accounts help in the recording process by providing a systematic and
organized way to document financial transactions. Each transaction is
recorded in at least two accounts, known as double-entry accounting.
For example, when a company receives cash, it will record a debit to the
cash account and a credit to the account related to the item purchased.
This ensures that the total value of debits always equals the total value
of credits, which helps to maintain the accuracy of the accounting
records.
By keeping track of transactions in individual accounts, it becomes easier
to monitor the financial activity of a business and generate reports that
summarize this information. For instance, by looking at the cash account,
one can determine the current balance of available funds. Similarly, by
analyzing the revenue account, one can calculate the total amount of
money generated by a business over a given period.
Overall, accounts provide an essential framework for organizing financial
data and ensuring that all transactions are accurately recorded.
 ‫جامعة التكوين المتواصل‬

• Define debits and credits and explain their use in

recording business transactions?
Debits and credits are two fundamental concepts in accounting that are
used to record financial transactions.

In accounting, a debit represents an increase in an asset or expense

account or a decrease in a liability or equity account. A credit, on the
other hand, represents an increase in a liability or equity account or a
decrease in an asset or expense account.

The use of debits and credits is based on the double-entry accounting

system, which requires that each transaction be recorded in at least two
accounts. For example, when a company purchases inventory for cash, it
will record a debit to the inventory account and a credit to the cash
account. This ensures that the total value of debits always equals the
total value of credits, which helps to maintain the accuracy of the
accounting records.

Here are a few examples of how debits and credits are used in recording
business transactions:
• A company purchases inventory for cash: Debit Inventory (an asset
account) and Credit Cash (another asset account).
• A customer pays for goods purchased on credit: Debit Cash (an asset
account) and Credit Accounts Receivable (a liability account).
• A company pays for rent expense: Debit Rent Expense (an expense
account) and Credit Cash (an asset account).
• A company issues shares of stock: Debit Cash (an asset account) and
Credit Common Stock (an equity account).

Overall, debits and credits serve as the foundation for the double-entry
accounting system, which provides an accurate and organized way to
record financial transactions and monitor the financial health of a
business.
‫جامعة التكوين المتواصل‬

‫شكرا أستاذ‬

‫‪2023‬‬