What Is a Revolving Account?
The economic cycle account is set up according to the main links in the economic cycle, and it includes the national economy account, institutional sector account, industrial sector account, and economic cycle matrix. The economic circular account adopts the double-entry accounting method, which connects the basic indicators of various flows and stocks in the basic accounting table to form a set of logically rigorous and rigorous account systems, which systematically describe the national economic cycle process and the various sectors of the national economy. Internal connection.
Revolving Account
Right!
- Chinese name
- Revolving Account
- Including
- National Economy Account, Institutional Account
- Method
- Double-entry accounting method
- Focus on
- Accounting for economic recycling processes
- The economic cycle account is set up according to the main links in the economic cycle, and it includes the national economy account, institutional sector account, industrial sector account, and economic cycle matrix. The economic circular account adopts the double-entry accounting method, which connects the basic indicators of various flows and stocks in the basic accounting table to form a set of logically rigorous and rigorous account systems, which systematically describe the national economic cycle process and the various sectors of the national economy Internal connection.
- The basic accounting table and the economic circular account are both interconnected and have their own characteristics. They are both descriptions of the operation of the national economy, but with different emphasis. Each basic table is a complete description of a certain aspect of the national economy, and the five tables form relatively independent five parts. They can serve some special fields or professional needs in economic management. On the other hand, they serve as a part of China's national economic accounting system and form an organic whole. There is also capital flow; both domestic economic activities and foreign economic exchanges.
- The economic cycle account focuses on the calculation of the economic cycle process. Each account is constructed strictly according to the process of production, distribution, consumption, and accumulation. Each account is connected to each other through a balance term, which fully reflects each of the economic cycle processes. The basic content of the links clearly reflects the interconnections between the links.
- Development of the economic circular account
- According to the State Council s deployment of national and provincial-level national economic accounting systems in 1995, the National Bureau of Statistics of China began to compile economic circular accounts in 1995. Economic circular accounts are one of the two major components of China s new national economic accounting system. It uses the account accounting method to describe the operation of the national economy in a comprehensive and systematic way, and provides a scientific basis for the macroeconomic analysis. According to the characteristics of economic operation, it divides the operation process of the entire national economy into different operating processes that are relatively independent and interconnected, and uses different accounts to describe different processes. Through the interconnection between different accounts, different economies The operating conditions and their connections are described in a comprehensive and systematic way.
- According to the different objects of the national economy, the economic circular account is divided into the general economic account, the institutional sector account, and the industrial sector account. The general economic account accounts for the national economy as a whole, and reflects the overall operation of the national economy through indicators of economic aggregates, such as GDP, gross national income (GDP), and national disposable income; Accounts of different institutions and departments, systematically describe the status of different types of market entities in the process of economic operation and their interconnections and interactions in these processes; the economic cycle account accurately reflects the industries of the national economic life according to the accounts of the industrial sector The true status of scale and industrial structure; the economic cycle account uses the asset-liability account to reflect the economic stock, and through financial assets, non-financial assets, and other indicators, understand and master the economic strength of the entire national economy and various institutional sectors; It comprehensively reflects China's foreign trade activities, including the import and export of goods and services, the inflow and outflow of factor income, external transfers, external financial transactions, and various external economic stocks.
- The China Economic Recycling Account Trial Program was designed on the basis of the 1993 SNA and combined with China's actual situation and the current state of national economic accounting. The 1993 SNA is the latest achievement made by countries around the world in their theoretical research and practice in national accounting. It consists of a set of logical and coherent macro-recurring economic accounts, balance sheets and tables, and provides a comprehensive accounting framework. It mainly records in detail the various economic activities taking place in the economy through the form of accounts, as well as the interaction and role of different economic institutions. Therefore, its content is very detailed and extensive. In order to achieve the full transition of the new national economic accounting system, based on the 1993 SNA, China has prepared a trial program of the economic circular account that basically meets China's national conditions. The settings are different from the new SNA. However, it basically follows the accounting principles and methods of international standards. Therefore, the information compiled according to it has a wide range of practicality and international comparability.