What Is an Account Balance? An account balance is the amount of money present in a financial repository, such as a savings or checking account, at any given moment. The account balance is always the net amount after factoring in all debits and credits. An account balance that falls below zero represents a net debt—for
What Is an Account Executive? An account executive is an employee who is primarily responsible for an ongoing business relationship with a client. Account executives are most commonly found in advertising, public relations, and financial services. In addition, technology companies that provide hardware and software support services assign account executives to significant customers. Key Takeaways
What Is an Account Freeze? An account freeze is an action taken by a bank or brokerage that prevents some transactions from occurring in the account. Typically, any open transactions will be canceled, and checks presented on a frozen account will not be honored. However, the account holder can still deposit money into the account.
What Is an Account History? An account history is a running record of all of the financial transactions logged in a bank, credit card, or investment statement. In a bank or credit card statement, the account history records all credits and debits. In a statement from a broker, it records all purchases and sales of
What Is Accounting? Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company’s operations, financial
What Is Accounting Insolvency? Accounting insolvency refers to a situation where the value of a company’s liabilities exceeds the value of its assets. Accounting insolvency looks only at the firm’s balance sheet, deeming a company “insolvent on the books” when its net worth appears negative. Also known as technical insolvency, a company can have the
What Is Accounting Changes and Error Correction? Accounting changes and error correction refers to guidance on reflecting accounting changes and errors in financial statements. It outlines the rules for correcting and applying changes to financial statements, which includes requirements for the accounting for, and reporting of, a change in accounting principle, a change in accounting
What Is Accounting Conservatism? Accounting conservatism is a set of bookkeeping guidelines that call for a high degree of verification before a company can make a legal claim to any profit. The general concept is to factor in the worst-case scenario of a firm’s financial future. Uncertain liabilities are to be recognized as soon as
What Are Accounting Controls? Accounting controls consists of the methods and procedures that are implemented by a firm to help ensure the validity and accuracy of its financial statements. The accounting controls do not ensure compliance with laws and regulations, but rather are designed to help a company operate in the best possible manner for
What Is an Accounting Convention? Accounting conventions are guidelines used to help companies determine how to record certain business transactions that have not yet been fully addressed by accounting standards. These procedures and principles are not legally binding but are generally accepted by accounting bodies. Basically, they are designed to promote consistency and help accountants overcome
