Balance sheet accounts

What are Balance Sheet Accounts?

Balance sheet accounts are used to create the balance sheet report. A balance sheet account can be classified as either an asset, liability, or equity account. These accounts are not flushed out at the end of a reporting year; instead, they carry balances forward from year to year. Given this characteristic, balance sheet accounts are known as permanent accounts. The following are examples of balance sheet accounts:

Asset Accounts

Balance sheet asset accounts include all short-term and long-term assets. Short-term assets typically include cash, marketable securities, accounts receivable, and inventory. Long-term assets are mainly comprised of fixed assets. The chief asset accounts found on the balance sheet are as follows:

• Cash

• Marketable securities

• Accounts receivable

• Inventory

• Fixed assets

• Other assets

Related AccountingTools Course

The Balance Sheet

Liability Accounts

Balance sheet liability accounts include all short-term and long-term liabilities. Short-term liabilities include accounts payable, accrued expenses, taxes payable, pension payable, and short-term debt. Long-term liabilities are mainly comprised of long-term debt. The chief liability accounts found on the balance sheet are as follows:

• Accounts payable

• Accrued expenses

• Taxes payable

• Pension payable

• Short-term debt

• Long-term debt

• Other liabilities

Equity Accounts

Balance sheet equity accounts include stock, additional paid-in capital, and retained earnings. The chief equity accounts found on the balance sheet are as follows:

• Common stock

• Preferred stock

• Additional paid-in capital

• Retained earnings

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