- To aid in record keeping, a business can compartmentalize its financial accounts into sub accounts to allow for more straightforward tracking of each department's finances.
Related Terms and Acronyms
- Asset — Definition,
- Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
- General Account (GA) — Acronym, Very Important,
- Investments and assets that an insurer uses for paying benefits and claims.
- Investment — Definition,
- Something you put your money into in order to make money.
- Liabilities — Definition,
- A borrower's debts and legal obligations.
- Loss — Definition,
- When expenses are larger than revenues.
- Profit — Definition,
- When revenues exceed expenses.
- Protected Cell Company (SPC) — Acronym,
- A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
- Security — Definition,
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- Property designated as collateral.
- A document stating ownership of a stock or bond.