Explain the relationships among asset accounts, asset classes, and gen- eral ledger accounts. Explain the three transaction types in asset accounting.
12. Explain the relationships among asset accounts, asset classes, and gen- eral ledger accounts. Asset accounts refer to those master accounts that contain all the transactional data pertaining to a particular asset. Asset accounts are one of 3 accounts used in balance sheet. Example of asset accounts includes inventory, prepaid expenses, land, building, equipments, cash, furniture etc. Asset classes refer to group of securities with same characteristics and behavior in terms of regulations. 3 main assets classes are stocks, cash and fixed income