Equity accounts track a company’s net worth. A company’s equity, also known as ‘owners’ equity’ or ‘capital’, is calculated by subtracting its liabilities from its assets. Some common equity accounts are current year earnings, retained earnings and shareholders’ equity.
This column displays a checkmark next to each account in the list that’s linked to a transaction type. For example, an asset account may be linked to all sales that result in money owed to you; each time you enter a sale that’s not fully paid, the amount you’re owed will automatically be added to this account’s balance.
To view the types of transactions an account is linked to, click the zoom arrow next to the account’s name in the Account Name column. In the Profile view of the Edit Accounts window, the Linked Account for field describes what the account is linked to.
For asset, liability or equity accounts, the amount shown here is the value of the account. For income, expense, cost of sales, other income or other expense accounts, the amount shown here is the total of all activity with the account since the beginning of the current fiscal year.
For a variety of reasons, you may have two accounts that would be better treated as one account. Click Combine Accounts to open the Combine Accounts window, where you can combine one
detail account with another.
Select an account in the list and click Edit to open the Profile view of the Edit Accounts window.
