For example, Sierra Corporation has separate accounts for Cash, Accounts Receivable, Accounts Payable, Service Revenue, Salaries Expense, and so on.

For example, Sierra Corporation has separate accounts for Cash, Accounts Receivable, Accounts Payable, Service Revenue, Salaries Expense, and so on. (Note that whenever we are referring to a specific account, we capitalize the name.) Accounting equation Determine the effect, if any, on assets, liabilities, and stockholders” equity. Explain what an account is and how it helps in the recording process.