What is an account?

This video defines what an account really is. An account is an accounting record of increases and decreases in a specific asset, liability, or equity item. In its simplest form, an account consists of three parts: (1) a title, (2) a left or debit side, and (3) a right or credit side. The meaning of debit and credit balance in accounting is also explained. As you will see, normal balance is a critical concept in double-entry accounting system.