Bad Debt - All or portion of an ACCOUNT, loan, or
note receivable considered to be uncollectible.
Balance - Sum of DEBIT entries minus the SUM of
CREDIT entries in an ACCOUNT. If positive, the
difference is called a DEBIT BALANCE; if negative, a
CREDIT BALANCE.
Balance Sheet - Basic FINANCIAL STATEMENT,
usually accompanied by appropriate DISCLOSURES that
describe the basis of ACCOUNTING used in its preparation
and presentation of a specified date the entity's
ASSETS, LIABILITIES and the EQUITY of its owners. Also
known as a STATEMENT OF FINANCIAL CONDITION.
Bankruptcy - Legal process, governed by federal
statute, whereby the DEBTS of an insolvent person are
liquidated after being satisfied to the greatest extent
possible by the DEBTOR'S ASSETS. During bankruptcy, the
debtor's assets are held and managed by a court
appointed TRUSTEE.
Blue Sky Laws - State laws that regulate the
ISSUANCE of SECURITIES. These laws are coordinated with
federal acts.
Board of Directors - Individuals responsible for
overseeing the affairs of an entity, including the
election of its officers. The board of a CORPORATION
that issues stock is elected by stockholders. (See AUDIT
COMMITTEE.)
Bond - One type of long-term PROMISSORY NOTE,
frequently issued to the public as a SECURITY regulated
under federal securities laws or state BLUE SKY LAWS.
Bonds can either be registered in the owner's name or
are issued as bearer instruments.
Book Value - Amount, net or CONTRA ACCOUNT
balances, that an ASSET or LIABILITY shows on the
BALANCE SHEET of a company. Also known as CARRYING
VALUE.
Budget - Financial plan that serves as an
estimate of future cost, REVENUES or both.
Business Combinations - Combining of two
entities. Under the PURCHASE METHOD OF ACCOUNTING, one
entity is deemed to acquire another and there is a new
basis of accounting for the ASSETS and LIABILITIES of
the acquired company. In a POOLING OF INTERESTS, two
entities merge through an exchange of COMMON STOCK and
there is no change in the CARRYING VALUE of the assets
or liabilities.
Business Segment - Any division of an
organization authorized to operate, within prescribed or
otherwise established limitations, under substantial
control by its own management.
Bylaws - Collection of formal, written rules
governing the conduct of a CORPORATION'S affairs (such
as what officers it will have, what their
responsibilities are, and how they are to be chosen).
Bylaws are approved by a corporation's stockholders, if
a stock corporation, or other owners, if a non-stock
corporation. (See GOVERNING DOCUMENTS.) |