Chart of accounts is the list of accounts adopted or used by a company. The choice of having different types of accounts in the chart of accounts depends on the company. It varies from company to company, as the organizational makeup is different for each company. Some common chart account followed in balance sheets are Assets, Liabilities, Owner’s (Stockholders’) Equity.


Assets are the resources acquired by the company that can be expressed in terms of cash. Following are some of the common asset accounts included in the chart of accounts. The current assets are the assets that will be converted to cash within a year or in the current operating cycle of a company. The second types of asset accounts are Long term investment accounts that are for investment that will not be disposed of in near future. The third types of accounts are the fixed assets that are purchased with aim of using them in a long term to increase the profit of a company. The fourth types of asset accounts are for the intangible assets, whose value cannot be calculated physically like the trademarks, patents, etc.


A liability is an obligation for a company or an individual to settle a debt. There are only two commonly account for liabilities. Current liability accounts are for accounts that can be settled with the current operational cycle. Long term liability account is for liabilities that would take more than a year to settle.

Owner’s (Stockholders’) Equity:

Owner or stockholders’ equity is a calculation by negating liabilities from assets. There are organized into three types they are paid-in capital, retained earnings, treasury stock. Paid in capital is contributed by investors by buying the stocks above the normal value. Retained gain is the net income or profit that is not given to the shareholders but is invested in the same business. The last type of accounts is Treasury stock, which is the stock purchased back by the company.