Glossary of Accounting Terms

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Index of Accounting Terms - B

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Bad Debt Expense icon representing uncollectible customer payments
Bad Debt Expense Related Terms: Allowance for Doubtful Accounts, Accounts Receivable, Uncollectible Accounts, Credit Loss, Direct Write-Off Method, Aging of Receivables, Estimating Bad Debts, Managing Credit Risk, Impact of Bad Debt on Financials What is Bad Debt Expense? An expense recognized when a company determines that some of its accounts receivable are unlikely to be collected. Recording bad debt expense helps in accurately reflecting a company's financial health by acknowledging potential losses from extending credit to customers.
Balance Sheet Icon representing a balance scale or the three components of a balance sheet (assets, liabilities, equity)
Balance Sheet Related Terms: Statement of Financial Position, Statement of Financial Condition, Net Worth Statement What is a Balance Sheet? The balance sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial position
Bill Pay Icon representing the act of paying bills, such as a hand making a payment or an invoice with a payment mark
Bill Pay Related Terms: Payment Processing, Vendor Payments, Invoice Payments, Disbursement What is Bill Pay? Bill pay is the process of managing and paying a company's outstanding invoices and obligations to its vendors and suppliers.
Book Value icon representing an asset's net value on the balance sheet
Book Value Related Terms: Net Asset Value (NAV), Carrying Value, Book Value Per Share (BVPS), Accumulated Depreciation, Asset Valuation, Balance Sheet, Market Value vs Book Value, Calculating Book Value of a Company, Shareholder Equity What is Book Value? The value of an asset as recorded on a company's balance sheet, calculated as the original cost of the asset minus any accumulated depreciation or impairment charges. For a company, book value (or net book value) represents its total assets minus total liabilities, indicating the net worth attributable to shareholders.
Bookkeeper icon representing financial record-keeping professional
Bookkeeper Related Terms: Bookkeeping Services, Financial Records, General Ledger, Accounts Payable, Accounts Receivable, Bank Reconciliation, Payroll, Financial Statements, Small Business Bookkeeping, Virtual Bookkeeper, Certified Bookkeeper, bookkeeping software What is a Bookkeeper? A professional responsible for the systematic recording, classifying, and summarizing of a company's day-to-day financial transactions. Key duties include maintaining the general ledger, processing invoices, managing accounts payable and receivable, reconciling bank statements, and preparing initial financial reports.
Bookkeeping Icon representing the recording of financial transactions, such as a ledger, pen, or data entry interface
Bookkeeping Related Terms: Record Keeping, Financial Tracking, Keeping the Books, Doing the Books What is Bookkeeping? Bookkeeping is the systematic process of recording and classifying a business's financial transactions to provide a foundation for accounting and financial reporting.
Bottom Line Icon representing the final profit figure, perhaps with a downward line indicating deductions leading to the final number
Bottom Line Related Terms: Net Income, Net Earnings, Final Profit, Profit After Taxes What does Bottom Line mean? The Bottom Line refers to a company's net income or profit after all expenses, including taxes and interest, have been deducted from total revenue
Break-Even Point Icon representing cost and revenue analysis
Break-Even Point Related Terms: Fixed Costs, Variable Costs, Contribution Margin, Cost-Volume-Profit (CVP) Analysis What is the Break-Even Point (BEP)? Learn how businesses calculate the sales level (in units or dollars) at which total revenues equal total costs, resulting in zero profit or loss. Understanding your BEP is crucial for pricing, cost control, and financial planning.
Budget Planning Icon representing the creation or management of a budget, such as a chart with projected income and expenses
Budget Planning Related Terms: Financial Planning, Budgeting, Forecasting, Financial Roadmapping What is Budget Planning? Budget Planning is the process of creating a detailed financial roadmap that outlines expected revenues and expenses over a specific period.
Icon representing the rate of cash expenditure
Burn Rate Related Terms: Cash Burn, Runway What is Burn Rate? The rate at which a new company is spending its venture capital to cover overhead before generating positive cash flow from operations.
Business Expenses icon representing costs incurred in business operations
Business Expenses Related Terms: Operating Expenses (OpEx), Cost of Goods Sold (COGS), Deductible Business Expenses, Tax Deductions for Business, Managing Overhead Costs, Business Expense Categories, Tracking Expenses, Startup Costs, Fixed vs Variable Expenses What is Business Expenses? The costs incurred in the ordinary course of conducting business operations, necessary to generate revenue. These can include operating costs like rent, utilities, salaries, marketing, and supplies, as well as the cost of goods sold. Properly identifying and tracking business expenses is essential for financial analysis, profitability assessment, and tax reporting.
Icon representing personal items used for business
Business Use of Personal Property Related Terms: Business Expenses, Personal Property Deduction, Mixed-Use Property What is Business Use of Personal Property? The use of personal property, such as a vehicle or home office, for business purposes, which may allow for tax deductions.

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