Account Balance

AAA

DEFINITION of 'Account Balance'

1. The amount of money in a financial repository, such as a checking account, at any given moment.
2. The total amount of money owed to a third party such as a credit card company, utility company, mortgage banker or other type of lender or creditor.

The account balance will always be the net amount after factoring in all debits and credits.

INVESTOPEDIA EXPLAINS 'Account Balance'

For example, on a credit card account, you may have made purchases of $100, $50 and $25 and returned an item costing $10. The account balance would include not just the purchases you made, which total $175, but also the item you returned for $10. The net of your debits and credits would be $165 ($175 - $10), and that amount would be your account balance.

RELATED TERMS
  1. Reconciliation

    An accounting process used to compare two sets of records to ...
  2. Available Balance

    Balances in checking or on-demand accounts where there is a delay ...
  3. Account Hold

    Deposits that are delayed before being credited to an account, ...
  4. Average Balance

    The balance on a loan or depositary account. A simple average ...
  5. Account

    1. An arrangement by which an organization accepts a customer's ...
  6. Checking Account

    A transactional deposit account held at a financial institution ...
Related Articles
  1. Shuffle Away Your Debt With Balance ...
    Credit & Loans

    Shuffle Away Your Debt With Balance ...

  2. All About Banking
    Savings

    All About Banking

  3. 5 Keys To Unlocking A Better Credit ...
    Credit & Loans

    5 Keys To Unlocking A Better Credit ...

  4. Credit Card Perks You Never Knew You ...
    Insurance

    Credit Card Perks You Never Knew You ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center