Account Balance

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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.

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