The Account Type field is an important aspect of Sage 50 Accounting because it enables you to format the financial statements (Balance Sheet and Income Statement) presentation, as desired. Consider the following sample Balance Sheet:

Balance Sheet As of Dec. 31, 2019 ASSETS LIABILITIES Cash in Bank Accounts $4,000 Accounts payable $2,000 Accounts Receivable $2,000 Short-term debt $4,000 Equipment $13,000 Wages owed $1,000 Raw materials $3,000 Total liabilities $7,000 OWNER'S EQUITY Capital $2,000 Retained earnings $17,000 Business Owner's Draw $4,000 Total equity $15,000 Total assets $22,000 Total liabilities & equity $22,000