Balance sheet account is a type of accounting account used to record transactions affecting assets (assets) and the sources of funding for these assets (liabilities) in the business entity. Balance sheet accounts are directly linked to the company's balance sheet, as they reflect the state of assets and liabilities at a given point in time.
Balance sheet accounts are divided into asset accounts and liability accounts. At the close of the accounting period, the balances of the balance sheet accounts are transferred to the balance sheet to present the current financial position of the company.
