Accounting Dictionary - Letter B

• Balance sheet: A financial statement that presents a company's assets, liabilities, and equity at a specific point in time.
• Bookkeeping: The process of recording and maintaining a company's financial transactions in a systematic and organized manner.
• Budget: A detailed plan outlining projected income and expenses over a specific period, used to guide financial decisions.
• Bank reconciliation: The process of comparing a company's bank statement with its internal financial records to ensure accuracy and identify any discrepancies.
• Bankruptcy: A legal process where a company is unable to pay its debts and is declared insolvent, resulting in the liquidation of its assets.
• Bad debt: An amount owed to a company that is unlikely to be collected, often written off as an expense.
• Bond: A type of debt security issued by a company to raise capital, typically with a fixed interest rate and maturity date.
• Break-even point: The point at which a company's revenue equals its total fixed and variable costs, resulting in neither profit nor loss.
• Barter: A transaction where goods or services are exchanged for other goods or services, rather than for cash.
• Basis: The original cost or value of an asset, used to calculate gains or losses upon sale.
• Benchmark: A standard or reference point used to measure performance or compare financial data.
• Bill of lading: A document that serves as a receipt for goods shipped and outlines the terms of the shipment.
• Blue chip: A high-value stock or investment, often considered to be low-risk and stable.
• Book value: The value of an asset or company as recorded on the balance sheet, often different from its market value.
• Bottom line: A company's net income or profit, often used to measure its financial performance.
• Bonds payable: A type of liability that represents the amount a company owes to bondholders.
• Borrowing: The act of obtaining funds from a lender, often with interest and repayment terms.
• Branch accounting: A system of accounting used by companies with multiple branches or locations, to track and report financial data separately.
• Broker: An intermediary who facilitates transactions between buyers and sellers, often in financial markets.
• Business entity: A separate and distinct organization, such as a corporation or partnership, that operates for profit.
• Balance: The state of being equal or in equilibrium, often used to describe a company's financial position.
• Bank statement: A document provided by a bank that shows a company's account activity and balance.
• Bankrupt: A company or individual that has been declared insolvent and is undergoing bankruptcy proceedings.
• Bearer bond: A type of bond that can be transferred without endorsement, often used to raise capital.
• Beneficiary: A person or organization that receives benefits or payments from a trust or estate.
• Bequeath: To leave or give property or assets to someone through a will or estate.
• Beta: A measure of a stock's volatility or risk, often used to compare investments.
• Bills of exchange: A type of negotiable instrument that represents a promise to pay a specific amount on a specific date.
• Blanket bond: A type of insurance policy that covers multiple assets or risks under a single policy.
• Blockchain: A decentralized and digital ledger that records transactions and data in a secure and transparent manner.
• Board of directors: A group of individuals elected or appointed to oversee and make decisions for a company.
• Booked: To record or enter a transaction into a company's financial records.
• Breakage: The amount of money or assets that are lost or unaccounted for, often due to errors or discrepancies.
• Budgetary control: The process of monitoring and controlling a company's expenses and revenues to ensure they are within budget.
• Burn rate: The rate at which a company is spending its cash reserves, often used to measure its financial health.
• Business cycle: The fluctuations in economic activity that occur over time, often used to describe the ups and downs of a company's financial performance.
• Business valuation: The process of determining the value of a company or business, often used for mergers and acquisitions or investment purposes.
• Buy-sell agreement: A contract between business partners or shareholders that outlines the terms of buying or selling shares of the company.
• Bylaws: A set of rules or regulations that govern the internal operations of a company.
• Balance brought forward: The amount of money or assets that are carried over from one accounting period to the next.
• Bank draft: A type of payment instrument that is drawn on a bank's account, often used for international transactions.
• Bank overdraft: A situation where a company's bank account balance is negative, often due to excessive withdrawals or insufficient funds.
• Basket purchase: A type of acquisition where a company purchases multiple assets or businesses at the same time.
• Bearer instrument: A type of security or instrument that can be transferred without endorsement, often used to raise capital.
• Billable hours: The amount of time spent by employees or consultants on a project or task that can be billed to clients.
• Blank entry: A journal entry that is made to correct an error or omission in a company's financial records.
• Bond discount: The difference between the face value of a bond and its market value, often used to calculate interest income.
• Bond premium: The difference between the face value of a bond and its market value, often used to calculate interest income.
• Bonus: A payment or reward made to employees or executives for meeting or exceeding performance targets.
• Book inventory: A company's inventory of goods or materials that are recorded in its financial records.
• Book of original entry: A journal or ledger that records a company's financial transactions in chronological order.
• Bookkeeper: An individual responsible for recording and maintaining a company's financial transactions.
• Bridge loan: A type of short-term loan that is used to finance a company's operations or projects until more permanent financing can be secured.
• Burden rate: The rate at which a company's costs or expenses are allocated to its products or services.
• Business interruption insurance: A type of insurance policy that covers a company's losses due to unexpected events or disruptions.
• Buy-back: A situation where a company repurchases its own shares or assets, often to reduce the number of outstanding shares or to increase shareholder value.
• Balloon payment: A large payment made at the end of a loan or lease, often used to reduce the monthly payments.
• Bank charges: Fees or charges imposed by a bank on a company's account, often for services such as overdrafts or wire transfers.
• Bank credit: A type of loan or credit facility provided by a bank to a company, often used to finance its operations or projects.
• Base year: A reference year used to calculate inflation or economic growth, often used in financial analysis and planning.
• Beneficial owner: The individual or organization that ultimately benefits from a trust or estate, often used in tax planning and estate planning.
• Bilateral contract: A contract between two parties, often used in business transactions and agreements.
• Bill of materials: A list of materials or components required to produce a product or service.
• Billing cycle: The period of time between billing a customer and receiving payment, often used in accounts receivable management.
• Black economy: A portion of the economy that operates outside of the law or without reporting income, often used to describe tax evasion or money laundering.
• Blanket insurance: A type of insurance policy that covers multiple assets or risks under a single policy.
• Blocked currency: A currency that is restricted or blocked by a government or financial institution, often due to economic sanctions or trade restrictions.
• Bonded debt: A type of debt that is secured by a bond or other collateral, often used to finance large projects or infrastructure.
• Booking: The process of recording or entering a transaction into a company's financial records.
• Borrowing base: The amount of money or assets that a company can borrow from a lender, often based on its creditworthiness and collateral.
• Brand equity: The value of a company's brand or reputation, often used in marketing and advertising.
• Breakup fee: A fee paid by a company to terminate a contract or agreement, often used in mergers and acquisitions.
• Broker-dealer: A firm or individual that buys and sells securities on behalf of clients, often used in financial markets.
• Built-in gain: A gain or profit that is built into a company's financial statements, often due to the appreciation of assets or investments.
• Bulk sale: A sale of a large quantity of goods or assets, often used in business transactions and agreements.
• Business combination: A merger or acquisition of two or more companies, often used to expand operations or increase market share.
• Business expense: An expense incurred by a company in the course of its operations, often used in tax planning and financial reporting.
• Business plan: A document that outlines a company's goals, objectives, and strategies for achieving success, often used in entrepreneurship and small business management.