UK Accounting Glossary
In accounting, the balance of an account is defined as the sum of all debits and credits to that account. An account balance can be either current, including all such debits and credits or defined for a period ending earlier. For example, the balance due on an invoice reflects the total of all charges accrued and all payments recorded to date. To balance an account is to determine the balance by recording and tallying all applicable debits and credits. A balance sheet is a part of the financial statement for a company that shows the aggregate balance for both assets and liabilities, and therefore owners’ equity. The term balance is also used to describe national trade accounts, as in trade balance or balance of payments.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Balance are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th February 2020.