Balance

Business, Legal & Accounting Glossary

Definition: Balance



What is the dictionary definition of Balance?

Dictionary Definition


  1. uncountable a state in which opposing forces harmonise; equilibrium
  2. uncountable mental equilibrium; mental health; calmness, a state of remaining clear-headed and unperturbed
  3. Something of equal weight used to provide equilibrium (literally or figuratively); counterweight

Full Definition of Balance


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.


Cite Term


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Page URL
https://payrollheaven.com/define/balance/
Modern Language Association (MLA):
Balance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 06, 2020 https://payrollheaven.com/define/balance/.
Chicago Manual of Style (CMS):
Balance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/balance/ (accessed: July 06, 2020).
American Psychological Association (APA):
Balance. PayrollHeaven.com. Retrieved July 06, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/balance/

Definition Sources


Definitions for Balance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020 | 3 Views.