/etc/passwd is the text file that contains public user account information
The name is a little bit misleading because the password is no more present (replaced with a X) as this file is used by many application to lookup user information such as file ownerships with ls
The passwords and other sensitive information are know stored in the shadow file.
It's used by the the PAM module. See:
Format of the file is:
Each field is separated by a colon.
cat /etc/passwd
root:x:0:0:root:/root:/bin/bash
bin:x:1:1:bin:/bin:/sbin/nologin
daemon:x:2:2:daemon:/sbin:/sbin/nologin
adm:x:3:4:adm:/var/adm:/sbin/nologin
lp:x:4:7:lp:/var/spool/lpd:/sbin/nologin
sync:x:5:0:sync:/sbin:/bin/sync
shutdown:x:6:0:shutdown:/sbin:/sbin/shutdown
...............
gerardnico:x:500:500:Nicolas GERARD:/home/gerardnico:/bin/bash
applvis:x:501:501::/home/applvis:/bin/bash
oravis:x:502:501::/home/oravis:/bin/bash