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Accounting Terminology
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 amount.