These sub-types determine the location or appearance of the account in the corresponding financial statement. These are sub-types that are mapped to the Balance Sheet and Income types. Examples include Assets, Liabilities, Income, Expenses, Cost of Goods Sold, Bank, etc. In most accounting systems though, you may see other options when adding a new account in the chart of accounts. Consequently, the accounts are used for the corresponding transaction documentation. The type indicates which financial statement, balance sheet or income statement (aka Profit and Loss Statement), the account goes to.
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