|Bad Debt: An uncollectable Account Receivable.
Balance Sheet (statement of financial position): The financial
statement that shows the assets, liabilities, and owners' equity of an entity
at a particular date.
Bank Reconciliation: The process of systematically comparing
the cash balance as reported by the bank with the cash balance on the company's
books and explaining any differences.
Basis of Accounting: A term used to refer to when revenues,
expenditures, expenses and transfers - and the related assets and liabilities
- are recognized in the accounts and reported in the financial statements.
Basket Purchase: The purchase of two or more assets acquired
together at a single price.
Benefits: Payments to which participants may be entitled under
a pension plan, including pension benefits, death benefits and benefits due
on termination of employment.
Bill: A term typically used to describe a purchase invoice.
Bill of Materials (BOM): A list including the name and price
of each material or part required to manufacture a finished product. It sometimes
shows the processing cost (labor and overhead) at each stage of production.
Board of Directors: Individuals elected by the stockholders
to govern a corporation.
Bond: A contract between a borrower and a lender in which
the borrower promises to pay a specified rate of interest for each period the
bond is outstanding and repay the principal at the maturity date.
Bond Carrying Value: The face value of bonds minus the unamortized
discount or plus the unamortized premium.
Bond Discount: The difference between the face value and the
sales price when bonds are sold below their face value.
Bond Indenture: A contract between a bond issuer and a bond
purchaser that specifies the terms of a bond.
Bond Maturity Date: The date at which a bond principal or
face amount becomes payable.
Bond Premium: The difference between the face value and the
sales price when bonds are sold above their face value.
Bookkeeping: Refers to the task of recording the date, amount
and source of all business revenues and expenses.
Book Value: The net amount shown in the accounts for an asset,
liability, or owners' equity item.
Book Value per Share: A measure of net worth; computed by
dividing stockholders' equity for each class of stock by the number of shares
outstanding for that class.
Budget: A plan of financial operation embodying an estimate
of propose expenditures for a given period and the proposed means of financing
them. The term usually indicates a financial plan for a single fiscal year.
Business: An organization operated with the objective of making
a profit from the sale of goods or services.
Business Documents: Records of transactions used as the basis
for recording accounting entries; includes invoices, check stubs, receipts,
and similar business papers.
Business Expenses: Expenses that have been paid or incurred
in the course of business and that are ordinary, necessary, and reasonable in