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. Checking Account

    A transactional deposit account held at a financial institution ...
  3. Savings Account

    A deposit account held at a bank or other financial institution ...
  4. Frozen Account

    An account to which no withdrawals or purchases can be charged. ...
  5. Demand Deposit

    Funds held in an account from which deposited funds can be withdrawn ...
  6. Account

    1. An arrangement by which an organization accepts a customer's ...
RELATED FAQS
  1. How do I check the balance on my prepaid credit card?

    There are a few different ways to check the balance on a prepaid credit card using your phone or the Internet. Most prepaid ... Read Full Answer >>
  2. How does transfer pricing help business?

    Transfer pricing involves the trade of goods or services between two related companies, and both can come out the winner. ... Read Full Answer >>
  3. How do I calculate my effective tax rate using Excel?

    Your effective tax rate can be calculated using Microsoft Excel through a few standard functions and an accurate breakdown ... Read Full Answer >>
  4. How important are contingent liabilities in an audit?

    Contingent liabilities, when present, are very important audit items because they normally represent risks that are easily ... Read Full Answer >>
  5. How does quantifying fixed overhead volume variance show whether a company is profitable ...

    Fixed overhead volume cannot definitively prove a company is profitable, but it can be used to provide an excellent indication ... Read Full Answer >>
  6. What does inventory turnover tell an investor about a company?

    The inventory turnover ratio determines the number of times a company's inventory is sold and replaced over a certain period. ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    Shuffle Away Your Debt With Balance Transfers

    This option can save you big bucks, but only if you watch out for rates and fees.
  2. Savings

    All About Banking

    This tutorial will tell you everything you need to know about how checking and savings accounts work.
  3. Investing Basics

    Explaining Write-Downs

    A write-down is a reduction in the book value of an asset because it is overvalued compared to the market value.
  4. Savings

    Top Premium Checking Accounts of 2015

    Which banks offer the best deals for premium checking accounts – and what do you have to do to qualify for one?
  5. Personal Finance

    5 Times Cash Rewards Credit Cards Come In Handy

    Using a credit card with cash rewards during emergencies can help you get through tough times, buy you time to pay off costs and even reap a cash reward.
  6. Economics

    What are Noncurrent Assets?

    Noncurrent assets are property that a company owns that will last for more than one year.
  7. Economics

    Explaining Risk-Weighted Assets

    Risk-weighted assets is a banking term that refers to a method of measuring the risk inherent in a bank’s assets, which is typically its loan portfolio.
  8. Credit & Loans

    American Express's Main Competition

    American Express competes with Visa, MasterCard, and Discover Financial Services in the credit card space. It also competes with banks to draw consumers.
  9. Investing Basics

    How Much Do CPAs Make?

    If you're considering becoming a CPA, here's what you might expect to earn.
  10. Credit & Loans

    Credit Cards That Will Get You First Class Flights

    It's getting harder and harder to be upgraded to first or business class on airlines. Here are some credit cards that may help you get those premium seats.

You May Also Like

Hot Definitions
  1. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  2. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  5. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  6. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
Trading Center