Other accounts should be set up according to vendor. If the business has more than one checking account, for example, the chart of accounts might include an account for each of them. Account Order. Balance sheet accounts tend to follow a standard that lists the most liquid assets first.
The balance sheet is derived from our accounting equation and is a formal representation of our equation. Assets = Liabilities + Owner's Equity. If you recall, in an earlier lesson we learned that this equation is also called the Balance Sheet Equation.