Legal Definitions - AAA

Definition: AAA can refer to various organizations and acts, including the American ArbitrationAssociation, American Accounting Association, American Academy of Actuaries, and Agricultural Adjustment Act. In accounting, an account is a detailed statement of the debits and credits between parties to a contract or fiduciary relationship. It can also refer to a course of business dealings or other relations for which records must be kept.

Example: An example of an account is when a principal files an action for account against their agent to ascertain and recover the balance due. Another example is when a contractor files an action for account against a nonpaying customer to reconcile the monetary dealings between them.

Explanation: These examples illustrate how an account is a detailed statement of the financial transactions between parties in a fiduciary relationship or contract. It is used to determine the balance due and reconcile monetary dealings.