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1. • The Presentation is done by
Dombrovska Karina and Dombrovska Marina,
the students of group № 31

2. Charts of accounts
A chart of accounts (COA) is a created list of the accounts used by an organization to
define each class of items for which money or the equivalent is spent or received. It is
used to organize the finances of the entity and to segregate expenditures, revenue,
assets and liabilities in order to give interested parties a better understanding of the
financial health of the entity.
Normally defined by an identifier and a heading explaining text title and coded by
account type. In computerized accounting systems with computable quantity
accounting, the accounts can have a quantity measure definition.
The charts of accounts can, as in Sweden and Norway, be picked from a standard
chart of accounts, a list of predefined accounts, like the BAS in Sweden. In some
countries defined by the accountant from a standard charts of accounts general
layout, in some regulated by law. But in most countries it is entirely up to each
accountant to make and design.
The list can be numerical, alphabetic, or alpha-numeric identifiers. However in many
computerized environments like the SIE format only numerical are allowed. The
structure and headings of accounts should assist in consistent posting of
transactions. Each nominal ledger account is unique to allow its ledger to be located.
The list is typically arranged in the order of the customary appearance of accounts in
the financial statements, balance sheet accounts followed by profit and loss accounts.

3. Nomenclature, classification and
codification
Each account in the chart of accounts is typically assigned a name and a unique
number by which it can be identified. (Software for some small businesses may not
require account numbers.) Account numbers are often five or more digits in length
with each digit representing a division of the company, the department, the type of
account, etc.
As you will see, the first digit might signify if the account is an asset, liability, etc. For
example, if the first digit is a "1" it is an asset. If the first digit is a "6" it is an operating
expense.
A gap between account numbers allows for adding accounts in the future. The
following is a partial listing of a sample chart of accounts.

4. International aspects and
accounting information interchange
- Charts of accounts and tax
harmonisation issues
Most countries have no national standard charts of accounts, public or
privately organised, and improvisation is the case. In many countries there
are general guidelines, and in France the guidelines have been codified in
law. Sweden has a very well developed standard chart of accounts, the
branch organisat The EU commission has spent a great deal of effort on
administrative tax harmonisation, and this harmonization is the main focus
of the latest version of the EU VAT directive, which aims to achieve better
harmonization and support electronic trade documents, such as electronic
invoices used in cross border trade, especially within the European Union
Value Added Tax Area. However, there is still a great deal to be done to
realize a standard chart of accounts and international accounting
information interchange structure.

5. Types of accounts
Asset accounts: represent the different types of economic resources owned
or controlled by business, common examples of Asset accounts are cash,
cash in bank, building, inventory, prepaid rent, goodwill, accounts receivable
Liability accounts: represent the different types of economic obligations by a
business, such as accounts payable, bank loan, bonds payable, accrued
interest.
Equity accounts: represent the residual equity of a business (after
deducting from Assets all the liabilities) including Retained Earnings and
Appropriations.
Revenue accounts or income: represent the company's gross earnings and
common examples include Sales, Service revenue and Interest Income.
Expense accounts: represent the company's expenditures to enable itself to
operate. Common examples are electricity and water, rentals, depreciation,
doubtful accounts, interest, insurance.
Contra-accounts: Some balance sheet items have corresponding contra
accounts, with negative balances, that offset them. Examples are
accumulated depreciation against equipment, and allowance for bad debts
against long-term notes receivable.

6. Types of accounts
Asset accounts: represent the different types of economic resources owned
or controlled by business, common examples of Asset accounts are cash,
cash in bank, building, inventory, prepaid rent, goodwill, accounts receivable
Liability accounts: represent the different types of economic obligations by a
business, such as accounts payable, bank loan, bonds payable, accrued
interest.
Equity accounts: represent the residual equity of a business (after
deducting from Assets all the liabilities) including Retained Earnings and
Appropriations.
Revenue accounts or income: represent the company's gross earnings and
common examples include Sales, Service revenue and Interest Income.
Expense accounts: represent the company's expenditures to enable itself to
operate. Common examples are electricity and water, rentals, depreciation,
doubtful accounts, interest, insurance.
Contra-accounts: Some balance sheet items have corresponding contra
accounts, with negative balances, that offset them. Examples are
accumulated depreciation against equipment, and allowance for bad debts
against long-term notes receivable.