Balance sheet terminology

Sheet balance

Balance sheet terminology

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Sheet balance

In banking and accounting, the outstanding balance is the amount of money owed, ( or due), that remains in a deposit account. In bookkeeping, “ balance” is difference between the sum of debit entries and the sum of credit entries entered into an account during a financial period. When total debits exceed total credits, the account indicates a debit balance. A balance sheet ( un balance) is one of the most important financial statements used by an accountant or a business. It can be described as a snapshot of a company’ s financial situation in a given moment.

balance sheet terminology

A balance sheet is often described as a " snapshot of a company' s financial condition". Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business' calendar year.